Author Topic: USBC 1099 form (Read 9012 times)

shipper50 · « **on:** January 29, 2011, 02:50:53 AM »

I didn't remember the USBC combining brackets and any winnings on a 1099 in the past? To all you bigggg winners, your going to owe taxes unless you write things off.......

I got my 1099 from Reno today and wonder if it pays to get in brackets if you don't or cant write things off...

Shipper

T C 300 · « **Reply #16 on:** February 02, 2011, 04:36:27 PM »

^^^^ and then ppl wonder why this country is shambles!!!! aka "bad shape"

always a way to "screw" the system... gota love amerika

CPA · « **Reply #17 on:** February 03, 2011, 08:40:32 AM »

It's not screwing the system. It is knowing the rules. It 's my job to know these rules and how to apply them.

USBC Silver Level Coach

bowler001 · « **Reply #18 on:** February 03, 2011, 09:22:10 AM »

Did you read the case I posted? Obviously the IRS sees it differently in that case. It is very similar to what bowlers do. Do you honestly think if someone claimed all their bowling expenses as a business to go lose it all at nationals, the IRS is gonna think that's an attempt to run a legitimate business. If they got audited, they are gonna want to see a business plan, and numerous other reasons to show that is an honest attempt to create a profitable business. If you audited someone, would you take that seriously? Oh, I invest thousands of dollars in bowling to go to ONE tournament to hopefully generate ALL my revenue. Its no different than people claiming to run "businesses" at a loss every year, and then just applying for a new license using a different business name when they don't meet the 3 out of 5 "rule". This is exactly how people cheat the system.

jhutch769 · « **Reply #19 on:** February 03, 2011, 12:30:10 PM »

I keep a spreadsheet, separate it by Monday League Wednesday League and Tournaments. Keep track of all money spent on bowling and all money returned on bowling. I file a schedule c and claim any expenses up to my winnings and usually show a 50 loss or 50 profit.

I think this year my income was around 8800 and expense I showed around 8750.... been doing that for about 5 or 6 years now and so far no problems..

NoseofRI · « **Reply #20 on:** February 03, 2011, 01:07:55 PM »

I was told the rule on this is that if you show a loss in 3 out of 5 years the next time you file you will have to file bowling as a hobby. If you don't you can most likely expect to be audited in that year or the next.

bowler001 wrote on 2/2/2011 10:08 AM:
This is an interesting read that might help some of you decide how to go about this. http://www.ustaxcourt.gov/InOpHistoric/lo9we.TCM.WPD.pdf

This is similar to the bowling world except for the guy fished tournaments as a "business"....and filed a schedule C with pretty large losses every year. The IRS eventually concluded his business was a hobby, since it essentially wasn't profitable. In situations like this, it seems the IRS recommends writing expenses of as not-for-profit hobby. You cannot take a loss, but can deduct expenses up to the amount of winnings for a break even scenario. I know with TurboTax, there is a specific area to claim winnings and expenses from a hobby. I doubt very many bowlers are attending nationals intending to generate revenue as a "business". Granted, this guy was taking HUGE losses for 4 years straight, and his wife just happened to make around $200k a year.

CPA · « **Reply #21 on:** February 03, 2011, 01:28:17 PM »

Yes I read the case. There is a difference between deducting the costs of producing the income and all of your expenses. I agree that all of your expenses cannot be deducted.

The 3 out of 5 year rule is a test. If profits are not earned, then the taxpayer must support the claim it is a business through a facts and circumstances test. It is not automatic that an audit occurs if business losses are claimed if there is not a profit in 3 out of 5 years.

USBC Silver Level Coach

Tex · « **Reply #22 on:** February 04, 2011, 08:26:58 PM »

Yep. They always have and really sucks. You spend over $1000 for example in brackets plus your entry fees, win $600 combined and get a 1099. Happens all the time that you loose money and get nailed. Keep your records too of winning and fees, Keep your records of your entry fees so you can write off some expenses is all you can do.

Roll with 900 Global.

Made in Texas!

Author Topic: USBC 1099 form (Read 9012 times)

shipper50

USBC 1099 form

T C 300

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CPA

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bowler001

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jhutch769

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NoseofRI

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CPA

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Tex

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