A professional fisherman won a boat in a fishing tournament. He received a 1099-misc for the cost of the boat. Can this boat be depreciated in his business?

Forum|Forum|6 years ago
March 30, 2020
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Best answer by dd4vols

Sure... if he uses it in the business.. good thing he didn't win a big diamond....

dd4vols

Answer

Intuit Community Champion

Sure... if he uses it in the business.. good thing he didn't win a big diamond....

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M

mclubb5025Author

Level 2

He won $268,176 in several tournaments, 2 boats, trailer, motor, new Dodge Ram truck, Recreational vehicle and cash! Sure make it hard on this tax preparer.

Thanks for the info!

Accountant-Man

Level 13

Since he has to report the value of the boat as income, he can then depreciate it just like he bought it.

If he doesn't report the income, then the basis of the boat would be zero.

** I am "Elevating with Intention!"

BobKamman

Level 15

Professional tournament fishing is somewhat akin to professional gambling. It's something more than a hobby, but often something less that a business. An interesting fish tale:

https://www.mossyoak.com/our-obsession/blogs/fishing/brandon-palaniuk-discusses-the-price-of-being-a-top-level-professional

"Each tournament I fish costs about $7,500 for entry fee, food, lodging and gas.. . ."

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