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Pres Bush signed this in oct may help some of you other boaters out
On October 3, 2008, President George W. Bush signed the Tax Extenders Act of 2008. According to BoatU.S. (Boat Owners Association of the United States), it offers at least one possible tax savings benefit for anyone who purchased a bass boat or recreational fishing boat in 2008.
According to their press release dated January 19, 2009, "Boat owners who paid substantial state sales taxes on a new or used boat purchase last year, the Tax Extenders Act of 2008 ... continues to offer a federal tax benefit with a deduction for state sales taxes. Boaters must choose either the state sales tax deduction or state income tax deduction on their federal tax return — you cannot take both.
"In addition, to take the state sales tax deduction, the sales tax on a boat purchase must be applied at the same tax rate as the state's general sales tax. In order to claim the sales tax deduction, tax returns must be itemized. State sales taxes are entered on IRS form Schedule A, line 5b."
Even if you didn't purchase a boat in 2008 or otherwise can't qualify for that deduction, there may be others that fit your individual tax situation.
If you fish tournaments and report that activity to the IRS, you may be able to deduct expenses related to your tournament activities. Entry fees, travel, lodging, maintenance, insurance, organizational dues and depreciation are all likely candidates. Of course, all of your expenses should be carefully documented.
If you work as a guide, you may be able to deduct some or all of those expenses. Typical guide expenses may include advertising, business cards, show appearances, phone service and office expenses as well as many of those that also apply to tournament anglers. Again, make sure you document everything.
Now, a word of warning: Tax laws are complex and can be confusing. They can also change quickly and unexpectedly. In most cases the answer to a tax question depends upon the individual circumstances of the person asking the question. Since no two people's financial circumstances are exactly the same, the answers to their tax questions probably aren't exactly the same, either.
Therefore, anyone who thinks they qualify — or might qualify — for any of the possible deductions discussed in this article should seek the advice and counsel of a qualified tax professional before filing their federal, state or local tax return. Not doing so can turn out to be a very expensive mistake.
On October 3, 2008, President George W. Bush signed the Tax Extenders Act of 2008. According to BoatU.S. (Boat Owners Association of the United States), it offers at least one possible tax savings benefit for anyone who purchased a bass boat or recreational fishing boat in 2008.
According to their press release dated January 19, 2009, "Boat owners who paid substantial state sales taxes on a new or used boat purchase last year, the Tax Extenders Act of 2008 ... continues to offer a federal tax benefit with a deduction for state sales taxes. Boaters must choose either the state sales tax deduction or state income tax deduction on their federal tax return — you cannot take both.
"In addition, to take the state sales tax deduction, the sales tax on a boat purchase must be applied at the same tax rate as the state's general sales tax. In order to claim the sales tax deduction, tax returns must be itemized. State sales taxes are entered on IRS form Schedule A, line 5b."
Even if you didn't purchase a boat in 2008 or otherwise can't qualify for that deduction, there may be others that fit your individual tax situation.
If you fish tournaments and report that activity to the IRS, you may be able to deduct expenses related to your tournament activities. Entry fees, travel, lodging, maintenance, insurance, organizational dues and depreciation are all likely candidates. Of course, all of your expenses should be carefully documented.
If you work as a guide, you may be able to deduct some or all of those expenses. Typical guide expenses may include advertising, business cards, show appearances, phone service and office expenses as well as many of those that also apply to tournament anglers. Again, make sure you document everything.
Now, a word of warning: Tax laws are complex and can be confusing. They can also change quickly and unexpectedly. In most cases the answer to a tax question depends upon the individual circumstances of the person asking the question. Since no two people's financial circumstances are exactly the same, the answers to their tax questions probably aren't exactly the same, either.
Therefore, anyone who thinks they qualify — or might qualify — for any of the possible deductions discussed in this article should seek the advice and counsel of a qualified tax professional before filing their federal, state or local tax return. Not doing so can turn out to be a very expensive mistake.
