Charter captains will be getting crushed

[pmueller]

On top of all this good news charter captains will have a new few from the DHS, some sorta of new transportation "registration-tax fee etc" for the privlege of not being a terrorist.

[zacs]

i am by no means an accountant, but be careful deducting these expenses if your business.

From what I have been told, the IRS dictates that your business has to make money in any 3 of the past 5 years. If not they will consider it a Hobby and you are screwed.

MakoMike, can you confirm?

[MakoMike]

Originally Posted by zacs

i am by no means an accountant, but be careful deducting these expenses if your business.

From what I have been told, the IRS dictates that your business has to make money in any 3 of the past 5 years. If not they will consider it a Hobby and you are screwed.

MakoMike, can you confirm?

I don't remeber exactly what the rules is off hand, I think its one year out of the last six. But its a rebuttable presumption anyway, so if you can convince them you're in it for the money, whether you have a prfit or loss doesn't matter.

[beamie]

That is right PMueller. Your going to need one.

Hooper and I have discusses this last month. It is called a TWIC. Tranpotation workers identification credential. Basically another $130 tax. You can go online and make an appointment at the nearest TSA office to you. It really shouldn't apply to the small boat charter crowd however if you have a USCG license you are suppose to have one. Mine is pending at his time 6-8 week TSA backlog. I need it for my real job and chartering.

Hey, it is another deduction.......

Zacs,

Yes you have to keep good tabs. You do have to show a profit every so many years. On years when you are in the red and have to show a profit it is all creative book keeping. Not to mention the whole charter operation business is a partly a cash business. I have even seen short ads stating bring cash.....that isn't just because someone doesn't trust your check.