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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?

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Level 8

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

If an answer solves your issue, click on the "Accept as Solution" button! Makes it easier for people to find answers to similar questions that have already been posed.

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

If an answer solves your issue, click on the "Accept as Solution" button! Makes it easier for people to find answers to similar questions that have already been posed.

View solution in original post

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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!

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Level 11

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'm still a champion... of the world! Even without The Lounge.
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Level 15

@mclubb5025 wrote:

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!


Sounds like he won alot of stuff and you get to raise your prices!  win - win!


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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Level 11

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...

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