General Category => USBC Tournament => Topic started by: shipper50 on January 29, 2011, 02:50:53 AM
Title: USBC 1099 form
Post by: 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
Title: Re: USBC 1099 form
Post by: jhutch769 on January 29, 2011, 10:55:08 AM
They have been doing it for at least 7 years that I know of. My first was Billings and I got a 1099 the year after that. (If I remember my dates correctly)
When did you get yours? I have been waiting for mine.
Title: Re: USBC 1099 form
Post by: shipper50 on January 29, 2011, 11:47:49 AM
I guess they might have combined them in the past, but this is the most I have had to claim.
I got mine in today's mail...
Shipper
Title: Re: USBC 1099 form
Post by: StormRoto on January 29, 2011, 12:24:17 PM
I got my 1099 in the mail today. Kinda of in shock as usually they are late.
Title: Re: USBC 1099 form
Post by: jhutch769 on January 29, 2011, 04:27:54 PM
Yeah, mine was in the mail today when I got home from coaching
Title: Re: USBC 1099 form
Post by: CPA on January 31, 2011, 09:51:21 AM
It is easier to legally write-off items than you might think. I get these kind of questions all the time. I suggest finding a qualified tax professional who is also a bowler. They will understand.
USBC Silver Level Coach
Title: Re: USBC 1099 form
Post by: nutsforbowling on January 31, 2011, 02:34:30 PM
Shipper just use a schedule c and write off whatever you won. I usually just show a profit of less than $50 a year and have never had a problem.
i say you he dead!!!!!!!!!!!!
Title: Re: USBC 1099 form
Post by: krs99300 on February 01, 2011, 09:48:32 PM
shipper50,
What I do is turn myself into a business using a schedule C. You can write off every ball you bought, league fees, practice, shoes, travel, anything really that has to do with bowling. I have never had a problem with doing it. And you can even do it using TurboTax.
Kevin Smith Brunswick Advisory Staff Member www.bowlwithbrunswick.com www.sterlingbowl.com
Title: Re: USBC 1099 form
Post by: shipper50 on February 02, 2011, 05:39:01 AM
Thanks for the replies. I found out in 05 with my first Nationals at Baton Rouge I couldn't claim any deductions as I didn't have a mortgage then. Now this past year or so since I have a new house and can deduct, I can write things off up to my winnings and not more if I am not mistaken.
Shipper
Title: Re: USBC 1099 form
Post by: CPA on February 02, 2011, 05:58:30 AM
Filing a Schedule C is the correct way to do it. Howerver you cannot, legally, write-off everything associated with bowling. You can write-off everything associated with producing the income earned. Entry fees, travel, shirets, etc. League fees would not be deductible since they are personal.
A Schedule C can be filed whether or not you itemize deductions (mortgage interest, etc.).
USBC Silver Level Coach
Title: Re: USBC 1099 form
Post by: shipper50 on February 02, 2011, 07:08:20 AM
Thats great to hear now, I filled using H&R Block back in 06 after Baton Rouge and had about $700 in brackets and the filer said I could'nt deduct or write it off since I had no deductions due to not having a mortgage.
Too late now, but I have used the schedule c since then.
Shipper
Title: Re: USBC 1099 form
Post by: NoseofRI on February 02, 2011, 07:51:25 AM
I would not recommend using H&R Block again this year. I've used them in the past and with every extra form (such as the Schedule C) it's an extra $50 for them to do the return. Plus I've noticed that they aren't exactly the best when it comes to non-standard tax returns such as bowling winnings.
Just my advice as I believe the last time I went through them, with my regular 1099, the bowling, and college interest payments, I believe it cost me about $250 for them to do my taxes.
Title: Re: USBC 1099 form
Post by: bowler001 on February 02, 2011, 09:08:39 AM
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.
Title: Re: USBC 1099 form
Post by: Joeyd on February 02, 2011, 09:08:55 AM
Title: Re: USBC 1099 form
Post by: CPA on February 02, 2011, 02:25:58 PM
Using the hobby loss rules and deducitng the expenses on Schedule A is not helpful to the taxpayer. The expenses are only deductible if you itemize deductions. Also the expenses are only deductible to the extent the expenses exceed 2% of your adjsuted gross income. Adjusted gross income includes W-2 income as well as most other sources of income. Additionally, depending on the state you live in, you may not receive any deduction for the expenses. In Ohio, the return starts with federal adjsuted gross income and does not allow itemized deductions.
USBC Silver Level Coach
Title: Re: USBC 1099 form
Post by: T C 300 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
Title: Re: USBC 1099 form
Post by: CPA 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
Title: Re: USBC 1099 form
Post by: bowler001 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.
Title: Re: USBC 1099 form
Post by: jhutch769 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..
Title: Re: USBC 1099 form
Post by: NoseofRI 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.
Title: Re: USBC 1099 form
Post by: CPA 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
Title: Re: USBC 1099 form
Post by: Tex 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.