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Thread: Tax shelter...

  1. #1
    rx4pain's Avatar
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    Tax shelter...

    Serious question - I want to create a tax shelter. How about a business, a failing business where I don't make any money yet I buy a RXP-X, trailer, parts for the ski , and write off some of my vehicle towing it for a "X Adventure Tour Guide" business. Where I go around the waters and look for people that want to pay to ride on the back and tour their local watering holes.

    So I get a business tax ID and then what? Could it be done? Maybe a better name or something else but the same kind of scenario. I also have a nice camera so of course a "water tour guide/photographer" business.

    Any chance of this?


  2. #2
    SHO stopper palmbeach jesse's Avatar
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    Mabey you can, but its illegal to knowingly start a failing business for personal gain .... so mabey you shouldnt be saying this...

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    Beagleman62's Avatar
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    Quote Originally Posted by rx4pain View Post
    Serious question - I want to create a tax shelter. How about a business, a failing business where I don't make any money yet I buy a RXP-X, trailer, parts for the ski , and write off some of my vehicle towing it for a "X Adventure Tour Guide" business. Where I go around the waters and look for people that want to pay to ride on the back and tour their local watering holes.

    So I get a business tax ID and then what? Could it be done? Maybe a better name or something else but the same kind of scenario. I also have a nice camera so of course a "water tour guide/photographer" business.

    Any chance of this?
    You can incorporate yourself, get a federal ID # and start a business like you are suggesting. 2 things to think about. After 3-4 years and you are still loosing money (on paper), the IRS is gonna want to check you out. You can't loose money forever, never turn a profit, and not expect to raise the suspicions of the Feds. This is a big red flag for the IRS looking for "shelters" just as you describe.
    2nd thing. If you want to do this, why are you putting it out on a forum for everyone to see?

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    ctriverguy's Avatar
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    Dude, I would be careful... I sold boats a few years back (01) and about year and a half ago I gave a depostition to the FBI regarding someone who had purchased from me, for someone doing pretty much what you're looking to do. I dont know the outcome, but regardless, his "little business" didn't fool em.

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    Hydrotoys's Avatar
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    Well, I do know this. I'm going to be living in a shelter after paying my taxes this year.

  6. #6
    Quote Originally Posted by Hydrotoys View Post
    Well, I do know this. I'm going to be living in a shelter after paying my taxes this year.
    amen-brother

  7. #7

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    Don't know if anyone would look into this but, you would need a Coast Guard license to operate any boat for hire. No exceptions. The easiest would be the O.U.P.V. (operator of unispected passenger vessel) license or "6 pack" as it's often referred to.

    If you don't have one, and someone (or some agency) did a little investigating, you would at the least, be put out of business.

  8. #8
    The ski's have taken a "backseat" to the Corvette DarthAWM's Avatar
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    Quote Originally Posted by rx4pain View Post
    Serious question - I want to create a tax shelter. How about a business, a failing business where I don't make any money yet I buy a RXP-X, trailer, parts for the ski , and write off some of my vehicle towing it for a "X Adventure Tour Guide" business. Where I go around the waters and look for people that want to pay to ride on the back and tour their local watering holes.

    So I get a business tax ID and then what? Could it be done? Maybe a better name or something else but the same kind of scenario. I also have a nice camera so of course a "water tour guide/photographer" business.

    Any chance of this?
    I'd try a Roth IRA first, tax free growth

  9. #9
    rx4pain's Avatar
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    The Roth IRA seems to be best...I was just throwing out the idea. This year's taxes suck! I was expecting more and got much less and that equates to no immediate mods! So of course I want to stick it to the man that stuck it to my hobby.

    I could always start up an Atkins business next to Krispy Kreme - at least it wouldn't be a deliberate failure (well maybe that is). The Feds would probably be all over that venture!

  10. #10
    Beagleman62's Avatar
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    Quote Originally Posted by rx4pain View Post
    The Roth IRA seems to be best...I was just throwing out the idea. This year's taxes suck! I was expecting more and got much less and that equates to no immediate mods! So of course I want to stick it to the man that stuck it to my hobby.

    I could always start up an Atkins business next to Krispy Kreme - at least it wouldn't be a deliberate failure (well maybe that is). The Feds would probably be all over that venture!
    Sounds like you are getting a smaller refund? Why are you getting a refund? Adjust your withholding and get more money throughout the year. Refunds are nothing more than a interest free loan to Uncle Sam. If you get a $1000.00 refund, do this. Go dig a hole in your back yard, put that grand in the hole and cover it up. Next year about this time, go dig it back up. Getting a refund on your taxes is no different. I'm not trying to be a smart ass with yah, just using that as an example just like my brotherinlaw (a CPA) did about 25 years ago when I was talking about the big "refund" I was getting.

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