Keegles Posted February 28, 2014 Report Share Posted February 28, 2014 Just got my baits into 2 bait shops around here and am aware about form 720 and the 10% excise tax. I also have to pay business income tax if I show a profit too? How much do you guys use as deductions? Can I use tournament entry fees as deductions, filling up boat, fishing trips? I should put a logo of Obama on my package saying that I didn't make these baits, the government did. Quote Link to comment Share on other sites More sharing options...
BobP Posted March 10, 2014 Report Share Posted March 10, 2014 You need to consult a CPA. Do you have to pay tax on profits, after deducting business expenses? Yes, if there are any! Could you ignore it all and try to fly below the radar? Hmm.. Most tax audits are triggered by specific "red flag" circumstances or when their computers spit out a prospective benefit (taxes owed) big enough to justify their cost of going after it. Of course, there's also the dreaded "random audit". But they're getting pretty rare. Quote Link to comment Share on other sites More sharing options...
