taxes and skydiving

[cavscout73 0]

I know it has probably been covered but I havent found much useful info to this point.. Im at a dz that does 1099s now. How can I maximize my ”expenses” / ”deductions” to save my ass come the end of the year
Training jumps, camera gear, ratings courses. Mileage etc....
I know about the whole , ya cant show a loss for too long or it becomes a hobby side. But at the same time I need to find ways to at least break even if possible

[ChrisD 0]

If you are receving 1099s' then don't worry about the hobby suggestions. You keep written records of every expense, and mile traveled, except commuting, lic cost, subscription, specalized clothing and any and all personal jumps required for certification. In some instances you should go after the fuel credit. For the kero or your portion thereof,...it sounds like you already have a handel on this but my suggestion is most likely to be a little more agressive with individual items, many people get freaked out by this but if you read the fine print in any tax book

It always points out you are entitled to take all deductions and bis costs, it's the "all" word that many just don't get...Sometimes finding a tax attouney is worth the 400 - 500 fee just to talk
with one of these guy's, that's a deduction as well...

But what do I know, "I only have one tandem jump."

[Andy9o8 0]

Unless you're good at the fine points of taxation yourself, you're doing yourself a disservice if you don't consult some manner of tax professional.

For example, the IRS and/or your state's taxation department may have a different idea of the difference between a 1099 contractor and a W-2 employee than you and your DZO do. Make a mistake, and you poke The Bear in the nose; and The Bear usually pokes back. A good tax professional can guide you in the best way to "walk the line" that fits YOUR specific situation.

[BIGUN 1,069]

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ya cant show a loss for too long or it becomes a hobby side.

Untrue. Therefore, a reason to take others' advice and see a tax professional.

Nobody has time to listen; because they're desperately chasing the need of being heard.

[davelepka 4]

You have the right idea with your expenses. How much do you really stand to make at the DZ once you subtract all of your legitimate expenses? Once you start to add up things like 'training jumps', equipment, travel costs (including out-of state events) and every other penny you spend on skydiving, do you really have that much of a tax liability left?

Treat your DZ job (for tax purposes) like a shitty job for a shitty boss where you have an expense account. You're not going to out-of-pocket one dime for one paperclip for a shitty boss, so treat the DZ job the same way and see what's really left over.

Keep a running accounting of things, and between the end of the season and tax time, find a way to spend all or most of the 'profit' that you have left. Take a trip for 'recurrency training' in December, or buy some new gear to burn up whatever you couldn't write off during the season.

That said, if this is your primary source of income, or you just make so much money that you can't figure out enough BS to not clear a healthy profit, just pay the taxes on whatevers left and consider it a good year.

[theonlyski 3]

I sent all of my paperwork, receipts and mileage logs to my ex, the accountant.

Tell ya what, it pays to not burn your bridges.

"I may be a dirty pirate hooker...but I'm not about to go stand on the corner." iluvtofly
DPH -7, TDS 578, Muff 5153, SCR 14890
I'm an asshole, and I approve this message

[vpjr 1]

1099 vs. W-2. I had the State of NH hit me for one of my 1099 pilots. I fought it and lost. I am in MO now and the State sent me a pilot job posting were I would be a contractor. No workmans comp etc. Im holding it for when they come after me for taxes for my contract pilots and jumpmasters.

[ChrisD 0]

The issue of contractor V employee is another issue frought with abuse and peril, can anyone say union?

The thing with 1099s' is that your "employer" has spoken and they want every tax deduction without the cost's of having "employee's."

Tax and skydiving are two words that if you haul in let's say 45,000.00 in gross your real comparison salarey is about 32,000.00 - 28,000.00 per year.

Not a lot to worry about considering the spread from poverty. In other words as a rule the IRS has many other bigger fish to worry about than going off after gypsys who are basically broke!

Can anyone say groupon (perhaps) but skyride is puttin a hurt on skydiving? The many I have spoken with indicate groupon has been a blessing to their DZ's but the latter has certianly had a negative impact on skydiving! I would worry more about ICE for those of you who get caught for some minor traffic issue. Sucks I know, going broke skydiving, no benifits, no health insurance, etc. and the ice folks want to make an example of the two individuals from russia who's visa's have expired 5 years ago...

Speaking with so many of you out there your "customer" has shown you that they are going after every tax penny by issuing a 1099 as required by law, again the point is so many who do file; frequently, omit many expenses and the cost of buisness, that's if you can figure out your cost of buisness. this is where a tax pro working for you can show you what you have been failing to consider. On the other hand when your under 28,000.00 or so and no taxes have been withheld you really shouldn't be taxed in the first place because you are bareily survivin and generally have only a camper to show for years of work that because of depreciation and age arn't worth shit anyways!

But what do I know, "I only have one tandem jump."

[Andy9o8 0]

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In other words as a rule the IRS has many other bigger fish to worry about than going off after gypsys who are basically broke!

Still risky. The IRS considers "1099 abuse" to be endemic, and they're cracking down.

[cavscout73 0]

Thanks for all the input, I do plan on getting someone to do my stuff at the end of the year. I just want to make sure im,tracking and keeping up with everything along the way.

As far as tracking ” training jumps / rating courses” do you guys request receipts or just go off log entries?

[skyjumpenfool 2]

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As far as tracking ” training jumps / rating courses” do you guys request receipts or just go off log entries?

No need for receipts. Unless, of course, you get audited?

Birdshit & Fools Productions

"Son, only two things fall from the sky."

[Southern_Man 0]

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Thanks for all the input, I do plan on getting someone to do my stuff at the end of the year. I just want to make sure im,tracking and keeping up with everything along the way.

As far as tracking ” training jumps / rating courses” do you guys request receipts or just go off log entries?

I set up an LLC, got an IRS EIN and set up a separate small business bank account. Only business income goes in there, only business expenses come out. Also have a separate credit card just for my business. I made this arrangement partly to make record keeping easier.

"What if there were no hypothetical questions?"

[airdvr 198]

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Thanks for all the input, I do plan on getting someone to do my stuff at the end of the year. I just want to make sure im,tracking and keeping up with everything along the way.

As far as tracking ” training jumps / rating courses” do you guys request receipts or just go off log entries?

I set up an LLC, got an IRS EIN and set up a separate small business bank account. Only business income goes in there, only business expenses come out. Also have a separate credit card just for my business. I made this arrangement partly to make record keeping easier.

Good idea.

Please don't dent the planet.

Destinations by Roxanne

[Andy9o8 0]

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Thanks for all the input, I do plan on getting someone to do my stuff at the end of the year. I just want to make sure im,tracking and keeping up with everything along the way.

As far as tracking ” training jumps / rating courses” do you guys request receipts or just go off log entries?

I set up an LLC, got an IRS EIN and set up a separate small business bank account. Only business income goes in there, only business expenses come out. Also have a separate credit card just for my business. I made this arrangement partly to make record keeping easier.

...The other part being: to (hopefully) limit your liability and thus protect your personal assets from being jeopardized by business liability.

[Southern_Man 0]

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...The other part being: to (hopefully) limit your liability and thus protect your personal assets from being jeopardized by business liability.

"What if there were no hypothetical questions?"

[JohnMitchell 14]

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ya cant show a loss for too long or it becomes a hobby side.

Untrue. Therefore, a reason to take others' advice and see a tax professional.

You are correct. My accountant sorts thru it all but she said "hobby style" part-time professions are very common. BTW, being legally a contractor, not an employee, allows me to deduct every mile of my drive to and from the DZ, well over 50 cents a mile this year.

[cavscout73 0]

Being 141 miles each walmost every weekend im lookin forward to the mileage write off..