i was wondering if u sell fur to a buyer do u have to clam it as in come on your taxes

Yes, its considered income.

uh oh....

charles

That's why it is important to keep track of expenses if you are going to rack up catches that run into the thousands of dollars. Mileage running your line. Mileage scouting new trapping ground. Cost of traps, bait, lures, and equipment. Once your trapping no longer is just a hobby with expenses that exceed your income, you definitely need to keep track of these things.

When guys on here post their season catches, I do a little mental arithmetic and figure out how much money they made on their season's catch. Does everyone do this, or is it just me? For instance, I think I estimated Cathryn's catch at around $2500. Some guys don't post their catches on here. I won't question their motives. If you'll notice, I don't post mine.

I'm sure all trappers report trapping income faithfully.....I've been trapping for 40 yrs and still don't catch anything........

don't you have to make over $750 dollars or something like that? CPA should answer this one, or I can call mine. I know I took a loss this year, spent about $700 and made about $250...so maybe I should report...lol

i am moving, just to let everyone no, and my new name is "adam"

adamKS

If you are required to file taxes proceeds from selling any amount of fur is reportable income,the same as interest income or a part-time job where you earn a few hundred bucks and recieve a W2 or 1099, but it is offset by the expenses incurred to produce it. That is why it is important to record mileage, running traps, scouting, gettng permissions, as well as all supply purchases, utilities on fur sheds etc. If your trapping is a hobby the expenses can be deducted up to the amount of income generated by trapping. If you are trapping as a business with a profit motive trapping expenses in excess of trapping income can be deducted from other income.

so......if we are supposed to claim our fur checks as income are we supposed to get a 1099 form from our buyer?
ill have to ask my guy?
man i hope not.

You can never deduct losses from one business against income from another....however if done properly you can deduct losses from trapping one year against income from trapping the following year.

I'll agree with Gary B. on this. sure i trap, i just can't catch anything.....lol

I just called my CPA, (best friend), he said "technically" you are suppose to report even the first dollar made, even if it is hobby income. And because the rules are so screwing something about 2% blah blah blah you couldn't even deduct $700 of expenses, you would just have to pay on the money you made.

He said gambling income is more favorable than reporting a hobby income such as raising dogs and selling the puppies.

I won't tell you what he told me to do, that is confidential!!!!...LMAO.

1. Don't take pictures
2. Don't write anything down.
3. Deny, deny, deny.

Any $$ you make must be reported. Whether it's one $12 coon or 100 $12 coons.

Just did my taxes yesterday. In fact.

Make sure you save all your reciepts, record gas mileage, and keep track of any other $$ you spend to trap/support your trapping.

Most of us trap for a hobby. All expenses up to the ammount you make can be deducted. If you make $1200 trapping, hopefully you have records showing that you can "write off" all $1200...be it traps, gas, material used to build a trap shed, ect. If not, you end up having what ever the difference is added onto your Adjusted gross income for the year.

You can't claim a loss though unless you do trapping for-profit. Like if you work construction durring summers, and trap all winter to supliment your living expenses for that time of year. Some guys that I know do this and have set up their own LLC company or something like one just for this because it's easier to write off a loss if theres a "company" behind the loss rather than just a guy and a trapping license.

-Skunkly-

why would you want to pay taxes on the fur you catch?????
what uncle sam doesnt know wont kill him just my 2 c

You are making a profit?

You do realize that you deduct ALL purchases related to trapping...that includes a $.44/mile deduction, that is, unless you have your own truck just for trapping, then it's actual gas, oil and expenses.

Lets say you make 60,00 a year in your day job. You have an IRA and you itemize with expenses such as your mortgage interest.

Now...you deposit a couple $1,000 checks from Groenies in your bank account.

You stand virtually NO CHANCE of being audited.

It will cost them more to audit, then they'll EVER get from you in back taxes/interest/penalties.

snowman your funny - I was nailed in '91 - I thought there was no way they would audit a little guy like me. SUCKS!!!

Randy,

Please go in to a little detail.

What were your gross sales?



Were you reporting on a Sch C???

lol

Nah, those traps in the shed are just for decoration. I just periodacally decorate the countryside every year.
My family used to detassle corn every year for extra money, but the checks were always made out to the kids. They are allowed to make so much every year without reporting anyway.

If the furbuyer pays you in cash without giving you a receipt, why would anyone report how much their furs sold for? The cost of the license, fuel, food, depreciation on the vehicle, traps, trapping equipment, yearly supplies such as lures, new traps, utility costs to heat the fur shed, auto insurance, depreciation on clothing, ect, ect, ect , would surely outweigh any supposed profit from trapping.

And this is my whole point.

There is no saying "those traps on the wall are just decoration"....You have to be REALLY special to get a visit from the IRS. We have a client that literally owes the IRS 400,000...and they are taking their sweet ole time. Why? He's playing with them. He responds to their letters, etc. They should NEVER end up on his property. All meetings will be mediated through his CPA. The guy handling the account at the IRS is handling a lot of other accounts too.

They dont care about little guys that are gettin a check for a couple grand running a trap line. If you get a letter in the mail, you should NEVER EVER EVER respond to it yourself. Take it to an accountant. They KNOW what to say.

Why do people get audited?

1) They recieved money from a company for contract work, and did not report it. IE: You worked for XXX and made 601.00 on a 1099 and did not report the 1099.

2) The amount that is on your 1040 is different than the amount reported to the IRS by your employers.

3) You filed a Schedule C and things didn't feel right to the IRS. The schedule C is the MOST AUDITED FORM. PERIOD! Dont start reporting income just because you want to be a business owner....that is, unless you like following ALL the rules, saving ALL the proof. Invest in a copy machine. Photocopy all of your reciepts. Organize them well. If you're accountant doesn't have a sheet feed scanner and off site electronic data storage, consider going elsewhere.

4) You deposited a BIG check. Banks are now required to report any check over *I THINK* $600. This is part of the whole anal probe homeland security thing...you might be a terrorist...or a plain ole non-income reporting criminal.

The point is...it's too much hassle for the average person to report the income. Save all the reciepts related to it regardless...if you feel you are turning a lot of profit, start reporting it.

Saying that the IRS is going to bust you because you turned a profit of a couple hundred bucks is like saying BobbyJean is gonna get busted because she had a yard sale.

There's one for you and two for me. I am the Tax Man, I am the Walrus,...coo coo ka-chooo" LOL