Hunting Licenses Tax Deductible?

[MNHunter]

Can someone with more tax experience enlighten me as to the legality of deducting the cash spent on hunting licenses, application costs, etc? I have a buddy, who owns his own business, that deducts the aforementioned costs if he doesn’t use/draw the tag(s). For example, say he applies in AZ and does not draw, he writes off the hunting license and app fees since he doesn’t then go to AZ and use the license he bought. His tax accountant tells him it is perfectly legal as it is a "donation" to the state. I spend more on non-refundable fees/licenses each year than he does…am I missing a sweet loophole or is he playing with fire in a grey area of the tax code???

Thoughts?

 

[Big Fin]

Does your friend like the food at Leavenworth Federal Pen?

Does his accountant have good malpractice insurance?

People deduct their dog food, their kid's cell phones, their haircuts, the wife's cosmetics, etc. Deducting it and it being an allowed deduction are often two different issues.

Donation, huh. Now that's a good one. A "B-" for creativity to your buddy and his CPA.

 

[schmalts]

I am no accountant but the only thing I ever put down as a deduction was the cost of getting meat cut up for the meat donation program.

 

[MNHunter]

Kinda what I was telling him. Not sure why he would risk his business to deduct huntng fees

 

[Whiskers]

depends on what his business is. I write off the expense of hunting trips out of state, because I take people with me, customers. My accountant came up with that plan. But my business is Sporting goods.
My cousin writes his fishing trips off because he takes clients, and he has a medical supply company.

 

[ppostma1]

I am searching for the same answer, and since it wasn’t here I kept looking and got some better explanations.

Here is the legal advice from lawyers: http://taxation.lawyers.com/tax-planning/deductible-taxes.html

Look for the section, “deductible Taxes” and “non-deductible” taxes.

The way it seems to work is whether the license/tax/fee is on personal property. Your house taxes, your vehicle license are personal property based, and are deductible.

A hunting license is not personal property.

It looks like someone’s friend is using the state department as a 501(c)3. They believe they can make a tax deduction “for contributions above and beyond services and good received” and if they don’t actually use the license the the full amount is above services rendered.

The problems with that idea are:
1 state department is not a non-prof organization. Failing to use the license does not constitute a donation.
2 they are not purchasing “a shot or draw”, they are purchasing the -option- to shoot or draw. Failing to use it expires the option and the value is not treated the same as a purchase on a physical item.


The 2 alternatives to this are the non-prof based Sportsmen Against Hunger programs or similar entities: https://www.animallaw.info/statute/...ural-resources-and-environmental-protection-0 ( 324.43540a ) which can be contributed to when you purchase a license.

And if the license is a BUSINESS expense. For instance, you must purchase the hunting license, before you can lead parties that pay you to do so. A fishing guide that takes you out on a boat must have a valid fishing license themselves, therefore their’s is a deductible business expense.

Because I train people on handgun grips and accuracy, a training pistol (or 3), the local shooting range membership dues, and any ammo spent on training them or educating myself is a business expense

I just keep the ammo used by the business ‘education’ to 50% or less of what my trainees use to balance personal/business. I also have a collection of books, training DVD, and non-functional training mockups to work with, and can prove an income from it, to back up my claims. The firearms purchased had distinct characteristics needed for training ( a .22, 9. and .45 to show kickback difference, all with changeable grips and >75% of usage is by trainees) All deducted ammo run through those guns, onsite at the shooting range #keepitlegit