Taxes and Disc Golf Winnings, Cash and Plastic

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Ven
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Taxes and Disc Golf Winnings, Cash and Plastic

Post by Ven » Tue Jul 16, 2013 8:07 am

The IRS expects everyone to claim all of the income they made in the tax year. If you made an excess over expenses, taxes are due. This came up in another thread, but I thought it deserved it's own thread.

Hobby or Business: If your goal is to make a profit you can claim a BUSINESS on Schedule C and write off all normal and necessary expenses against the income you made. You add this income to all your other income. If you make a Schedule C profit over $435 you owe an additional tax ,called the self employment tax of 15.3%. As a rule of thumb you must make a profit three out of five years.

If you are not in business you have a HOBBY. The IRS expects you to claim and pay taxes on hobby income in excess of hobby expenses. You cannot claim a loss from a hobby. Report the income on the Other Income line of your 1040 tax return.

This means if you play Amateur, the IRS wants you to claim the value of the plastic you win and the value of the players’ pack, less your cost to attend the tournament.

This is the simplest I can summarize a complex set of tax laws. I have been a tax preparer, bookkeeper, and other wise employed as an accountant since 1981. I am not a CPA. The IRS mandates that everyone decry the tax advice they write, but the tax court has the final say. If you have any questions I can answer them personally and confidentially at taxskill@gmail.com or 518-365-3157.
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Re: Taxes and Disc Golf Winnings, Cash and Plastic

Post by MichiganJeff » Tue Jul 16, 2013 8:49 am

Pretty sure that gas/tolls/food expenses FAR outweigh the money/merchandise any DisCappers have made.

Looking back at 2012....
I made $272 in sactioned events last year.
Actually made more in casual dubs ~$375
Total of 647

9 events at about $50 each = 450 entry fees
Probably $10 for food/drink(not counting beer) at each event = $90
27 J-Dubz rounds played at $8 each = $216
12 CPS Dubs rounds @ $8 each = $96
Expenses = $852

Tack on gas and hotels and it would be near $2000
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Ven
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Re: Taxes and Disc Golf Winnings, Cash and Plastic

Post by Ven » Tue Jul 16, 2013 9:09 am

Thanks for being open. That is my point. The IRS expects everyone to owe taxes, but even most Pros do not make a profit. Although Pros could claim a loss.

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Re: Taxes and Disc Golf Winnings, Cash and Plastic

Post by Cypress Will » Mon Aug 05, 2013 1:06 pm

To be seen by the IRS as a professional disc golfer does it need to be your main source of income?

Say I join the PDGA as a professional and play in the pro division for cash. If I play 15 events and cash for $200 but spend like $10000 on gear, travel(went on European tour like Avery Jenkins), entry fees, etc. I can claim $9800 as a loss? Would I be able to subtract that from my taxable income across other jobs or just off of my disc golf "business"? If I had $50,000 in taxable income from another job could I subtract my disc golf losses from that?

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Re: Taxes and Disc Golf Winnings, Cash and Plastic

Post by stripedcomic » Mon Aug 05, 2013 1:33 pm

I'm not a accountant, but I'm 99.9% sure you would only be able to take it off of your disc golf "business".

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Re: Taxes and Disc Golf Winnings, Cash and Plastic

Post by Ven » Mon Aug 05, 2013 3:12 pm

I am an accountant and registered tax preparer. You can deduct a disc golf loss against your other income. But if audited you must be able to show you have a profit motive. Generally need to make a profit 3 out of 5 years. Call me if you have more questions or need your taxes done.
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Re: Taxes and Disc Golf Winnings, Cash and Plastic

Post by stripedcomic » Mon Aug 05, 2013 4:06 pm

Sooooo... I'd say I was wrong then.

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Re: Taxes and Disc Golf Winnings, Cash and Plastic

Post by Ven » Mon Aug 05, 2013 4:24 pm

stripedcomic wrote:Sooooo... I'd say I was wrong then.

Well that depends, if you have a profit motive then it can be written off and you were wrong. But no profit motive, it is just a hobby, then it cannot be written off. See more explanation in first post.

And I better write this IRS disclaimer mandated for all written advice by tax preparers: "that advice I give may be wrong."

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Re: Taxes and Disc Golf Winnings, Cash and Plastic

Post by mstryker » Mon Aug 05, 2013 8:29 pm

Ven, Wouldn't anyone claiming winnings as income be able to deduct expenses from those winnings, though not to the point of taking a loss?

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Re: Taxes and Disc Golf Winnings, Cash and Plastic

Post by Ven » Tue Aug 06, 2013 6:18 am

mstryker wrote:Ven, Wouldn't anyone claiming winnings as income be able to deduct expenses from those winnings, though not to the point of taking a loss?

Yes.

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Re: local bookkeeping services

Post by MichiganJeff » Thu Jun 18, 2020 6:35 am

Gippos wrote:
Thu Jun 18, 2020 3:22 am

can I contact you regarding accounting ??
Sorry, but Ven passed away.
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