Lease Managers and/or CPA's - Question

[Sparkles]

Lease Managers and/or CPA's - Question

I personally have then contract with the land owner. My name is the only name on the contact. I lease the rights to hunt. I pay the lo. I shoulder all responsibility.

So you charge you're more than equal share for being the manager?

If you aren't than you have no revenue to show. If you are that'd make you a broker and not a very good one if you are loosing money intentionally and don't know which write offs would apply to that business.

[Smart]

I'm still kinda chuckling at somebody suggesting to a person that was able to pay cash for their house, that they need to better manage their money..

[d_e_smith]

Does the LO claim the income?

[Sparkles]

I'm still kinda chuckling at somebody suggesting to a person that was able to pay cash for their house, that they need to better manage their money..

Right?!
Lol

[JBJTX81]

If you own a house and lease it out. You claim the revenue as the owner. If the person leasing subleases the house is that not their revenue? Doesn't matter how many layers there are.

[JBJTX81]

https://turbotax.intuit.com/tax-tools/tax-tips/Small-Business-Taxes/When-the-IRS-Classifies-Your-Business-as-a-Hobby/INF22852.html

[junkmanhunter]

There are ways to do it legally. You just have to get your CPA to buy into it.

If you already own a LEGIT business, you can write off a portion of the lease, feeders, feed, fuel, mileage or gas depending how you claim your vehicle expenses, any accessories and food for the customers you take hunting. It is legit but as my CPA says, "You DANG sure better follow these guidelines or you're on your own"..

[Sparkles]

Didn't read to far before I got to "valid profit motive" and that doesn't seem like what we were talking about

[Todd-ty729]

I don't believe that owning or leasing the land is a factor.

People that own businesses lease their office/shop space all of the time.


This is interesting.

[Sparkles]

Lease Managers and/or CPA's - Question

I don't believe that owning or leasing the land is a factor.



People that own businesses lease their office/shop space all of the time.





This is interesting.

With a "valid profit motive"

[Tx625]

Better talk to a CPA, from what I have always been told that if the IRS see's someone writing of a deer lease they are red flagged, and are watching you. Not sure if it's true, but I would say if you do it, you better have your ducks in a row.

[junkmanhunter]

https://turbotax.intuit.com/tax-tool.../INF22852.html

Preventing your business from being classified as a hobby

Running a hobby as a business could very possibly trigger an IRS audit. If your business is legitimate, keeping accurate and extensive records could help prevent the classification of your business as a hobby.

In addition to demonstrating your professional approach to your business, records and receipts can help document your profit motive. A written business plan is often a prerequisite for indicating an intent for profit, and it can also show ways in which you are modifying your business to cope with losses.

From the link you posted. This pretty much answers your question.

[Electrican]

If you own a house and lease it out. You claim the revenue as the owner. If the person leasing subleases the house is that not their revenue? Doesn't matter how many layers there are.

Dude you should really consult a CPA because you are way off track. You have compared this to rental property multiple times and it's not the same. You are merely wanting to claim your "deer lease" as an business and write off your expenses. You said in your original post you have no intention of making this a profit center or outfitter service, only to write off your truck, corn, etc... If you try this good luck and it may work for a little while but eventually it will come to a head and your faced with back taxes, fines, penalties, a far cry from what you saved. If you decide to do this make sure you inform the landowner of your intentions, because when you get audited he will be next. Don't think he would appreciate that because chances are he is not claiming the lease income on his taxes either. Good luck!

[Smart]

I'm out. My area is corporate tax and finance anyway. I'll let the individual pros handle it....

Hopefully the IRS agree with you when they come knocking after years of showing a loss.

[Sparkles]

I'm out. My area is corporate tax and finance anyway. I'll let the individual pros handle it....

Hopefully the IRS agree with you when they come knocking after years of showing a loss.

lol

I'm out too may the audit be quick and painless