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gregugadawg
03-24-2009, 14:52
Has anyone done a little volunteer work along the trail in order to write off their hike? Any other tips on ways to be able to write off your 2000 mile walk.

Frosty
03-24-2009, 15:19
Has anyone done a little volunteer work along the trail in order to write off their hike? Any other tips on ways to be able to write off your 2000 mile walk.You must know you can't deduct time you spent working for a charity, only expenses you incurred, like transportation to and from, or if you give cash or buy new equipment for the Girl/Boy Scouts, and that is no way to save money because the expenses are like 7-8 times what you will save on taxes.

If you are going to cheat, do it right.

If you collect $5000 in receipts for your thruhike and deduct it from your taxes, your taxes go down like about 15 cents on a dollar so you save about $750. It still cost you $4, 250 to hike the trail. Big deal.

What you want to do is to collect money for a charity. Spread the word that you are hiking for some legitimate charity and promise to donate all proceeds after your expenses. That is important (after expenses), as you do not want to say you will donate everything. Say you collect $10,000. You take your $5000 expenses out of that and give $5000 to the charity. The charity is happy because they got $5000, you are happy because your thruhike cost you nothing except for beer and non-necessary purchases. The people who gave you money will be happy if you tell them you gave $5000 to the charity, as long as you don't tell them how much you actually raised.

The problem with most scam artists and cheaters is that they think too small. Expand your thinking.

Manwich
03-24-2009, 15:25
Just buy $100 in gold before you hike and when you're done it'll probably be worth $1,000

Panzer1
03-24-2009, 15:41
Any other tips on ways to be able to write off your 2000 mile walk.

It sounds like some kind of scheme. I think if the IRS audited you, you would probably be in for big trouble. I can hear the auditors laughing now.

Panzer

Pokey2006
03-24-2009, 15:46
Write a book. Deduct your expenses in the name of research.

Panzer1
03-24-2009, 15:49
If your charitable contributions exceed a certain percentage of you income, it will trigger an audit flag.

Panzer

UnkaJesse
03-24-2009, 15:55
Has anyone done a little volunteer work along the trail in order to write off their hike? Any other tips on ways to be able to write off your 2000 mile walk.

I'm a CPA. If they ever put IRS agents on commission, I swear I'm going to change teams. This is type of stuff would just be low hanging fruit for me.

sliderule
03-24-2009, 20:05
If they ever put IRS agents on commission...

Now there's a thought!!! Until then, there is the IRS Whistleblower Program, which pays rewards for useful information.

Blissful
03-24-2009, 21:34
Write a book. Deduct your expenses in the name of research.


Yes, that can be done. Esp if you are actively seeking publishers through an agent before your hike for a specific book and have constructed a query and proposal for it. No different than say, going to England to research a book that many still think is a vacation. I have used what some say are "vacations" as working vacations to research active books. In fact, taking one this June to reach a three book series set in Utah that has already been bought by a publisher. Yeah, going rafting down the Colorado - but I need to do it because my novel is about a rafting company. And yeah, I'll have fun doing that part of it. Why not have fun on the job? The tough part is writing the book and revising it which takes many long hours (only a writer would know this); and the advance money I get doesn't begin to pay for the hours I will put into it for a good product the readers deserve. And they also deserve a factual book too and not one made up for sensation sake. But that is only my opinion.

Wonder if Bill Bryson took a tax write off at all on his short trip - ? :)

Pokey2006
03-24-2009, 21:40
Blissful--

Oh, I'm sure he did! Especially since he had the book contract ahead of time. Then again, his publisher may have paid all his expenses. He would be able to deduct whatever the publisher didn't cover, though.

It is true that you'd have to be working on a legitimate project in order to deduct the expenses. Which turns your vaca/hike into a work trip. Which means you actually have to work. Yuck.

UnkaJesse
03-24-2009, 21:56
The book idea is actually my retirement plan. In about 30 years look for Unka Jesse's Guide to Fly-fishing Every Single Trout Stream in North Georgia.

Actually, the only problem with this strategy is a potential challenge using the hobby loss rules. (I'll save boring you with the Code references.) Essentially, hobby expenses are only deductible to the extent of hobby income. Thus, you can't claim a net loss on the activity. A profit motive is what separates a business from a hobby. The chief obstacle to the hiking book, backyard farm, or fly tying operation is proving the profit motive if you have a loss. Having that book deal in hand before you start is prima facia evidence of a profit motive.

So, any publishers out there interested in a deferred book deal on the hidden trout waters of North Georgia?

Pokey2006
03-24-2009, 21:58
Hey, seriously UnkaJesse, if you can write, try getting some pieces along those lines published in local papers or regional magazines. A column in a small paper, maybe. Might add some legitimacy and credibility to your proposal.

UnkaJesse
03-24-2009, 22:03
I really should. One of my clients is a local paper.

Pokey2006
03-24-2009, 22:06
Just make sure they pay you something, even if it's peanuts. Writers don't write for free! And if you do write for free, you'd have a hard time writing the expenses off on your taxes...

Another idea, if you're a good photographer, would be to take and sell pics along the AT. That's a legit freelance biz.

max patch
03-24-2009, 22:19
Now there's a thought!!! Until then, there is the IRS Whistleblower Program, which pays rewards for useful information.

I'm taking notes.

sliderule
03-25-2009, 00:02
Actually, the only problem with this strategy is a potential challenge using the hobby loss rules.

If you don't want the IRS to bother you, just claim that you are hiking to raise funds for the Democratic Party. You will be safe until at least 2013.