I love how an upward spike in the oil market is instantly tranlated to the pumps, but a downward trend takes a slow crawl backwards at the pumps. Yes, it only cost me $88.00 to fill my truck, much better than the $91.00 before.
-------------------- I was born in the 70's, grew up in 80's, made my mistakes in 90's now I'm just trying to make up for lost time.
Correct, but in St.Cloud it's .30 less than it was a week ago. 20 gallons into the dodge and I save $6.00. every 4 days. That's 2 dozen leeches each week for free!!
-------------------- -The more you know, the more you want to know-
So here is something to stir the pot or ruffle some feathers. It is well known that farmers don't need to pay road tax on gasoline or diesel for farm equipment as the machinery is used off-road. Thus making sense to bypass a Road Tax. Even though at times I do see tractors... on the Road. With that being said I live on the lake. Fill up my guide boat on the LAKE!! You will never see me drive my boat on the ROAD. Hey you know what I think it is fair to say there is a fleecing of fisherman due to a Road tax placed on gas for a boat. FYI go ahead and put a dye in my boat gas. Even with your $60,000 state issued commercial vehicle SUV's you won't catch me in the wrong on this one. You won't ever catch me driving the Lund Fisherman on the highway thus I feel it uneccesary for me to pay this tax. In fact I think to the contrary I have been shouldering a burden of unjust taxation for far too long. In closing I am calculating my gas usage and tax dollars spent on this obviously unwarranted taxation over the past several years. Calculated at a modest compounded interest rate. It will more than cover a few flats of crawlers. Yep it will be spot tailed chubs imported for me from here on out. From the fleecing of anglers intelligence agency.
RD
-------------------- Chris Granrud - RainyDaze Guide Service World-Class Walleye, Crappie, Pike & Smallmouth Bass Fishing! Visit RainyDaze Guide Service to book your next adventure!
-------------------- Chris Granrud - RainyDaze Guide Service World-Class Walleye, Crappie, Pike & Smallmouth Bass Fishing! Visit RainyDaze Guide Service to book your next adventure!
Keep your reciepts. Deduct only the Federal portion of the tax. Probably not worth the effort unless you are going thru 500+ gallons on the water a year.
what the heck JJ how does a guy find out this stuff????? will you do my taxes next year Im thinking you must know a few more loop holes you just ain't telling us about
If you are burning through that much gas on the water, it’s probably business related. It’s probably better to deduct the gas as a business expense. You can’t deduct both.
On a side note, if you particpate in a charity fishing event, I believe you can also deduct your expenses like gas, bait, any equipement that was used-up (fishing line), pretty much everything but your time, even if you do not have a fishing business. Just get something on paper that acknowledges you participated in the event without receiving anything of value in recompense, and keep the receipts for your expenses.
Quote: I write off gas against tournament winnings when I am lucky enough to have them. When guiding I used to write off the Federal portion of the gas tax.
Do be careful about this. I did once have the opportunity to discuss fishing tournament winnings with an IRS agent. Unless you can prove you have a legit business, and you are earning a noticable amount of money from that business, tournament winnings are considerad "hobby" income, meaning you can only deduct expenses up to the limit of you winnings, and that is considered "Misc. Deductions", which is subject to the 2% AGI (Ajusted Gross Income) limit. (Only the portion of your expenses which exceed 2% of your Adjusted Gross Income can be deducted).
If you don't qualify as a "for-profit" business in their eyes, and they audit you and ask about this, you could be looking at some significant extra penalties & interest.
Here in NE it's been dropping for a week now. We're 'down' to $3.63 in some areas. Just goes to show that these guys can do whatever they want with the gas prices whenever they want. Used to be when we had a hurricane we were told about how gas prices will go up. Haven't heard any of that yet...now it's tied to whatever oil is a barrel. The point is: they change their excuse whenever they need to make sure the wool is still being pulled down over our eyes in some manner. Pure criminals.
Quote: If you are burning through that much gas on the water, it’s probably business related. It’s probably better to deduct the gas as a business expense. You can’t deduct both.
-J.
For Federal purposes, if the gas (in the boat) is business related, the gas could be deductible, not just the tax, as an ordinary & necessary business expense. In addition, you could claim a Fuel Credit on Form 4136 for the business use, off-road use...in the boat.
As for the state, each one could be different. If the gas is business related and is deductible for federal, most times it is also deductible for state. The state road taxes are many times different for different states. You may or may not be able to claim a credit. If a credit is available, some states do not require it to be business use.
FYI, if you do receive a credit/refund of Federal and/or State fuel taxes and you had deducted it as a business expense, you must include it as income.
Quote: I write off gas against tournament winnings when I am lucky enough to have them. When guiding I used to write off the Federal portion of the gas tax.
meaning you can only deduct expenses up to the limit of you winnings,
I understand it is a write off. My point is the tax in which is being paid should not be due in the first place thus saving some personal income tax based on my tax bracket is much different than not paying a tax that clearly is stated as a tax for road purpose. Two different things and far different economics impacts.
-------------------- Chris Granrud - RainyDaze Guide Service World-Class Walleye, Crappie, Pike & Smallmouth Bass Fishing! Visit RainyDaze Guide Service to book your next adventure!
You make a very good point about the boat gas, but if you tow your boat on any road, our government will argue this is why you need to pay gas tax. I don't agree with this at all. I also don't agree with farmers being able to buy fuel tax exempt. EVERY farmer I know uses fuel from their farm barrel in their vehicles, which are driven on roads. I also agree that if they need to drive any tractor on the road, it should have taxable fuel in it. When someone can figure out how to fix this, let me know. Until then, I'll keep paying too much for my fuel and enjoy some time on the water.
Quote: I also don't agree with farmers being able to buy fuel tax exempt. EVERY farmer I know uses fuel from their farm barrel in their vehicles, which are driven on roads.
Farm deisel is dyed and if thay are caught with it in a on road vehicle the fine is pretty hefty so much per gallon that is in the vehicle. The red dye takes approximately 10 fill ups to compleatly leave the fuel system. So even if I need fuel in the truck and put 2 gallons of dyed fuel in the tank it takes a long time to get the dye out. If I would get stopped by DOT because of farm plates and they check me. It gets really nasty for fines.
Farm gas I have to pay federal tax and have to file for a return, state they do take off right away.
Gas and deisel delivered has been running .5 cents a gallon more then downtown. Used to be cheaper but not anymore.
Any gas or deisel used off road can be filed for a return of the taxes. lawmower. gas trimmer, boat, four wheeler. It does not have to be a bussiness for this tax return. As long as it is off road use only. That is what my tax person told me. That is how we do it.
-------------------- Do to fiscal constraints the light at the end of the tunnel wil be temporarerly turned off.
Any gas or deisel used off road can be filed for a return of the taxes. lawmower. gas trimmer, boat, four wheeler. It does not have to be a bussiness for this tax return. As long as it is off road use only. That is what my tax person told me. That is how we do it.
For Federal purposes, it does need to be for business. Any non-business off road use is does not qualify. Guaranteed. If you don't have a Schedule C, F, or possibly E or 4835, you are asking for an audit and/or an audit. State may be different as I indicated earlier.
I don't remember hearing anything about congress doing anything. The price of oil took a big drop so gas prices dropped. Ours only dropped 4 cents. You would think that the USA would be getting cheap oil prices from Irag because we got rid of their old monster president for them and pretty much took over the country. Thanks, Bill
I live on the lake, and fill up on the lake most of the time through the resorts. Leave right from the dock to guide. Most often my boat does not hit the roads unless as you mention I'm heading to another lake, repairs... Just thought I'd point out the obvious fleecing in which we all accept, and yes saving my tax bracket for a write off is something... I remember not long ago paying a license fees for all of my portable fishhouses as well. A good friend of mine "Woody" from Woody's resort helped spur on a charge against this taxation. Kudos!!! Buddy!!!
-------------------- Chris Granrud - RainyDaze Guide Service World-Class Walleye, Crappie, Pike & Smallmouth Bass Fishing! Visit RainyDaze Guide Service to book your next adventure!
Quote: I don't remember hearing anything about congress doing anything. The price of oil took a big drop so gas prices dropped. Ours only dropped 4 cents. You would think that the USA would be getting cheap oil prices from Irag because we got rid of their old monster president for them and pretty much took over the country. Thanks, Bill
The thing to keep in mind is that oil...Iraq included...is sold on a world market at a price of (Right now) around $125 $US per barrel. This is set by OPEC and diven up and down by speculators and supply and demand. So even though we drilled here...or bought oil from Iraq...the price per barrel would still be the same unless the US Government would step in and subsidize it like some other Countries. Our Country will not do this. For many good reasons!
What is driving oil prices down right now is the backing down of Iran. (There was an "Iran" premium being added due to their saber rattling recently about closing down the straights of Hormuz if the US or Israel stuck them.) Supply is up...demand is down due to the changes you and I have made in driving. And I firmly believe that even the threat of the US putting more oil on the world market you take money away from the Saudi's....oil being the ONLY export they have. So I believe you will continue to see it drop until the Americans stop talking about off shore exploration and drilling in Alaska. OPEC does not want us doing that!
A portion of all federal gas tax is dedicated to Wallop-Breaux Aquatic Resources Trust Fund. The money goes into one of 2 separate accounts – one for boating safety funds and another for sport fish monies.
About 1.25% of the WI total gasoline sales tax revenue gas tax goes to the Water Resources Account. I'm pretty sure a portion of MN gas tax goes to a similar fund.
Quote: The thing to keep in mind is that oil...Iraq included...is sold on a world market at a price of (Right now) around $125 $US per barrel. This is set by OPEC and diven up and down by speculators and supply and demand.
Not quite true. OPEC sets the SUPPLY end of things, for all members of their cartel, and ONLY those members. One major reason for the high prices is the weak dollar. The other major reason are the speculators.
Quote: Supply is up...demand is down due to the changes you and I have made in driving.
Actually, demand is up over-all. China, India and other developing countries are using FAR more additional oil than the US is saving.
Quote: And I firmly believe that even the threat of the US putting more oil on the world market you take money away from the Saudi's....oil being the ONLY export they have. So I believe you will continue to see it drop until the Americans stop talking about off shore exploration and drilling in Alaska. OPEC does not want us doing that!
I really doubt OPEC cares. It used to be the US was the main consumer of overseas oil. That is not even CLOSE to the case anymore. For the US to cut back on oil consumption enough to have an impact on the Saudi pocketbooks (enough that they care about), we would have to take some DRASTIC steps. Like no more using oil to produce electricity, or for heating homes. We would have to replace that with coal, nuclear, wind and solar power. We have plenty of coal, but it is expensive to burn cleanly, so people don't like that choice. Nuclear is ALWAYS a hot subject. Wind is only good in certain parts of the country, and is not totally reliable. Solar is even less reliable, only good in certain parts of the country, and is TERRIBLY inefficient. As for our producing more oil, it takes YEARS to find, drill, and finally ship oil from a new site. By which time the other developing countries will be looking for even MORE oil for themselves.
I've been driving a diesel for 8 years and I've been stopped by DOT once. Out here in the sticks, I don't think too many are concerned with getting caught. I know the dye stays for a long time, but apparently these farmers are not at all worried.
Quote: We used to get alot of diesels in here with red colored fuel..... not so much anymore.... don't know why
big G
When I was a farmer, I did get checked a number of times, usually if hauling cattle they set up checkpoints to the cattleyards and check every truck coming in. Outside of that type of driving, you rarely see a cop where we were.
But we always used taxed diesel anyways
-------------------- I would rather be sittting in the boat thinking of God, then sitting in church thinking about fishing.
Gas Prices
Im thinking you must know a few more loop holes you just ain't telling 
us about
You would think that the USA would be getting cheap oil prices from Irag because we got rid of their old monster president for them and pretty much took over the country. 
