Tax Returns & Fishing

[TobyW]

Time to go through the reciepts and work out the ole Mid year Bonus/penalty..

Ive been taking some clients out on the harbour over the last year and provided all the fishing kit etc.. wondering how and if I can claim back some of the small fortune I have spent in tackle shops..??

Anyone in a similar situation?

Ive Done around 30 trips, Boat is not my cost but I skipper it and organize the trip..

Any accountants out there who can suggest a formular to work it out?

Or am I dreaming?

Cheers

Toby

[tan the fisherman]

Hey Toby - here's how it works and sorry if it gets too technical.

THIS INFORMATION IS PROVIDED AS A GUIDE ONLY.

PLEASE CONSULT YOUR ACCOUNTANT OR TAX AGENT or ATO BEFORE RELYING ON THIS INFORMATION.

As the activities are incurred in generating business/sales they should be a expensed as a business expense.

On the days you go out, all expenses should be paid via business credit card or cheque. This will make everything transparent to the tax office. In this case all expenses would be classified as a business expense with NO IMPACT to your tax return.

Where you have spent from your pocket:

1. Keep all receipts - make sure dates are the same ie date of trip = date of expense.

2. All tackle, maps, bait, petrol bought on the day are claimable - if you buy anything in advance of the trip ie tackle or you fill up the boat the night before etc - write a note on back of receipt - "petrol for boat - Client ABC" or something similar.

3. Cost of your boat licence is claimable if its only used for this purpose.

4. The cost of your (for you only) travel from place of business to venue/boat ramp (return trip) is claimable. This includes any kms done in personal car and/or any cost of public transport getting you from primary place of business to the venue AND back to primary place of business NOT to home.... unless of course its the same place. Should you 'ferry' the clients to the venue in a hired bus etc the cost of this is also claimable.

Basically add up all the out of pocket expenses incurred on the day of the trip/s and claim them as deductions.

NOTES:

The use of the word 'claimable' refers only to your OUT OF POCKET expenses NOT expenses paid by the business. You cannot claim any expenses paid by the business or expenses re-imbursed to you by the business in your income tax return.

THIS INFORMATION IS PROVIDED AS A GUIDE ONLY.

PLEASE CONSULT YOUR ACCOUNTANT OR TAX AGENT OR ATO BEFORE RELYING ON THIS INFORMATION.

good luck

Tan

Edited July 2, 2008 by tan the fisherman

[Gene]

Your dreaming Toby, your trips would in all probability be classed as entertainment and not incurred in the course of your business. If you are in the business of running fishing charters then you would be able to claim these costs.

[TobyW]

Your dreaming Toby, your trips would in all probability be classed as entertainment and not incurred in the course of your business. If you are in the business of running fishing charters then you would be able to claim these costs.

I hear you mate, But to be honest Its business development in my eyes

I know guys who are employed to take clients to Lunch and golf.. thats all they do... And its written off as company expense..

I my case I have clients come over from OS and treat them to a day on the harbour to discuss business in a pleseant enviroment, or to thank them for large Contracts

I think the difficult or Grey area is where the co. should cover costs, and in my case I'm wondering if I have a Rod & reel thats worth $500, and in a year I use it 10 times with clients, and 10 times for non business use, whether I can claim a percentage. SImilar to a PC you buy, and use to DIal in to work outside of Hours, Its an expense you can claim on depending on usage

The Industry I'm in is very unique and this sort of client care is part of the game...

The Boat & fuel is a Tax deduction, why not the other accesories for the event.?

I have a detailed record of all outings, and receipts for days.. As we all know though with fishing, you can take out 400 items in your kit, yet only use 5 in reality.. but you need the options open..So should they all be considered in expenses.....

then again, Maybe I am dreaming..