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Old 05-10-2011, 05:35 PM   #1 (permalink)
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Default Interesting find

So I am on TW, bored at work and I look at the Pro Spot light section and today was Ish Monroe. According to TW Ish has made $853,264 professional fishing for the last 12 years. When you break that down into average annual earnings it is $71,105 per year. I am ignorant to how tournament money is taxed. Is tournament winnings on that level taxed at the same rate as gambling/casino type winnings or is it taxed like a normal position in that salary range in either the public or private sector? If it is taxed like gambling winnings or as a self employed/small business, making a living wage in California seems insurmountable for most when you factor in all the cost associated with tournament fishing at that level. I can't imagine all pro's at his level have the entire cost paid for. Could someone explain who pays for what, is there a base salary, how the pros are taxed are the small business owners and or how they register with Uncle Sam?
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Days on the Water -  30 something
(Year goals achieved) 
2011 Best 5 Fish Count                 
Big fish 1- 11.5lbs
Big fish 2- 8lbs 14oz   
Big fish 3- 7.5lbs
Big fish 4- 7lbs 4oz                                 
Big fish 5- 7lbs 2oz
Total: 42lbs 4oz
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Old 05-10-2011, 05:38 PM   #2 (permalink)
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Default Re: Interesting find

Quote:
Originally Posted by phishenfool
So I am on TW, bored at work and I look at the Pro Spot light section and today was Ish Monroe. According to TW Ish has made $853,264 professional fishing for the last 12 years. When you break that down into average annual earnings it is $71,105 per year. I am ignorant to how tournament money is taxed. Is tournament winnings on that level taxed at the same rate as gambling/casino type winnings or is it taxed like a normal position in that salary range in either the public or private sector? If it is taxed like gambling winnings or as a self employed/small business, making a living wage in California seems insurmountable for most when you factor in all the cost associated with tournament fishing at that level. I can't imagine all pro's at his level have the entire cost paid for. Could someone explain who pays for what, is there a base salary, how the pros are taxed are the small business owners and or how they register with Uncle Sam?
those are just his winnings and do not take into account what he gets from sponsors. also I do not think he pays his own entry fees.
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Old 05-10-2011, 05:45 PM   #3 (permalink)
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Default Re: Interesting find

Quote:
Originally Posted by RipNRog
Quote:
Originally Posted by phishenfool
So I am on TW, bored at work and I look at the Pro Spot light section and today was Ish Monroe. According to TW Ish has made $853,264 professional fishing for the last 12 years. When you break that down into average annual earnings it is $71,105 per year. I am ignorant to how tournament money is taxed. Is tournament winnings on that level taxed at the same rate as gambling/casino type winnings or is it taxed like a normal position in that salary range in either the public or private sector? If it is taxed like gambling winnings or as a self employed/small business, making a living wage in California seems insurmountable for most when you factor in all the cost associated with tournament fishing at that level. I can't imagine all pro's at his level have the entire cost paid for. Could someone explain who pays for what, is there a base salary, how the pros are taxed are the small business owners and or how they register with Uncle Sam?
those are just his winnings and do not take into account what he gets from sponsors. also I do not think he pays his own entry fees.
I was just using the info on TW that showed his earnings as an example. I know there are pros that make more or less on average. I am curious how the pros on that level are taxed and what is specifically paid for. Depending on how they are taxed and who pays for what (all tournament related expenses, gas, maintenance, equiptment, towing vehicle, vehicle insurance, health insurance, it seems like it would be extremely difficult to live off of.
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http://www.calfishing.com/gallery/main.php?g2_itemId=20776
http://www.DenaliRods.com
Http://www.dmcustombaits.com

Days on the Water -  30 something
(Year goals achieved) 
2011 Best 5 Fish Count                 
Big fish 1- 11.5lbs
Big fish 2- 8lbs 14oz   
Big fish 3- 7.5lbs
Big fish 4- 7lbs 4oz                                 
Big fish 5- 7lbs 2oz
Total: 42lbs 4oz
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Old 05-10-2011, 06:17 PM   #4 (permalink)
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Default Re: Interesting find

I am sure his taxes are done at the end of the year and taxed on his earnings no matter how it was made. There might be a loop hole on where it was made since he lives in California and prolly makes his money all over the country.
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Old 05-10-2011, 06:49 PM   #5 (permalink)
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Default Re: Interesting find

Quote:
Originally Posted by BMX
I am sure his taxes are done at the end of the year and taxed on his earnings no matter how it was made. There might be a loop hole on where it was made since he lives in California and prolly makes his money all over the country.
Good point. I never thought to consider where the money was one.
__________________
http://www.calfishing.com/gallery/main.php?g2_itemId=20776
http://www.DenaliRods.com
Http://www.dmcustombaits.com

Days on the Water -  30 something
(Year goals achieved) 
2011 Best 5 Fish Count                 
Big fish 1- 11.5lbs
Big fish 2- 8lbs 14oz   
Big fish 3- 7.5lbs
Big fish 4- 7lbs 4oz                                 
Big fish 5- 7lbs 2oz
Total: 42lbs 4oz
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Old 05-10-2011, 10:54 PM   #6 (permalink)
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Default Re: Interesting find

Dont think the earnings are a luxury tax but a 1099 form and tax on an individuals business. could be as high as 25% to 30% most likely more. A touring pro with big expenses would have many deductions, to offset winnings somewhat, still a tough row to hoe....
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Old 05-11-2011, 11:18 AM   #7 (permalink)
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Default Re: Interesting find

as a private business owner myself,
i am pretty sure all the pros that make fishing their living have LLC's, S or C-Corp, or some other business enterprise in their name. It would be just stupid not to.

Thus they pay their own personal taxes at the same rates we do. But, they also have to pay 100% of Self Employment Tax; which compensates for Social Security taxes. Most people, with regular jobs from a company don't pay that at all, or dont pay 100%; the company always pays that or a large portion of that. That is another 15% of your adjusted gross. most people dont know that when they start their own business and think they are making lots of money - not! the gov't gets you one way or another by piling on taxes.

Getting 1099's from all over the country doesnt matter. I work for companies all across the country and get them from everywhere, but i still just pay Ca taxes. Taxes are only paid where you live, not where you work or where your company resides. Think of fishing at a Texas Lake, like a business trip for these guys. Their business in in Ca., but they have a 3 day business trip required to do their job in Texas.

I think the info phishenfool is providing is really an interesting thing to consider. we always here how the "Pro's" are makeing lots of money, but on average, its just a regular job that has regular pay, but a lot of nice perks (if you love fishing). But the reality is simple........... you ain't getting to be a millionaire by being a Pro Fisherman. Stick to a high-tech job if you want to be a millionaire.

Kopper
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Old 05-11-2011, 12:13 PM   #8 (permalink)
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Default Re: Interesting find

Quote:
Originally Posted by Joe Kopp
as a private business owner myself,
i am pretty sure all the pros that make fishing their living have LLC's, S or C-Corp, or some other business enterprise in their name. It would be just stupid not to.

Thus they pay their own personal taxes at the same rates we do. But, they also have to pay 100% of Self Employment Tax; which compensates for Social Security taxes. Most people, with regular jobs from a company don't pay that at all, or dont pay 100%; the company always pays that or a large portion of that. That is another 15% of your adjusted gross. most people dont know that when they start their own business and think they are making lots of money - not! the gov't gets you one way or another by piling on taxes.

Getting 1099's from all over the country doesnt matter. I work for companies all across the country and get them from everywhere, but i still just pay Ca taxes. Taxes are only paid where you live, not where you work or where your company resides. Think of fishing at a Texas Lake, like a business trip for these guys. Their business in in Ca., but they have a 3 day business trip required to do their job in Texas.

Thanks Kopper. You have been very informative. The insight on the LLC peice was helpful. I have a buddy who wants to be pro someday and I was thinking that in the long run he probably would make more money doing what he does now. I was trying to explain the tax part to him but I did not know all the terminology and logistics of it. I have a few buddies who have LLCs and do private consulting...that always gripe about taxes, i just did not know how much it was.

I think the info phishenfool is providing is really an interesting thing to consider. we always here how the "Pro's" are makeing lots of money, but on average, its just a regular job that has regular pay, but a lot of nice perks (if you love fishing). But the reality is simple........... you ain't getting to be a millionaire by being a Pro Fisherman. Stick to a high-tech job if you want to be a millionaire.

Kopper
__________________
http://www.calfishing.com/gallery/main.php?g2_itemId=20776
http://www.DenaliRods.com
Http://www.dmcustombaits.com

Days on the Water -  30 something
(Year goals achieved) 
2011 Best 5 Fish Count                 
Big fish 1- 11.5lbs
Big fish 2- 8lbs 14oz   
Big fish 3- 7.5lbs
Big fish 4- 7lbs 4oz                                 
Big fish 5- 7lbs 2oz
Total: 42lbs 4oz
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Old 05-11-2011, 03:34 PM   #9 (permalink)
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Default Re: Interesting find

you might not become filthy rich fishin, but quality of life goes a long way in my books!
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Old 05-11-2011, 11:33 PM   #10 (permalink)
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Default Re: Interesting find

Quote:
Originally Posted by Travis Tate
you might not become filthy rich fishin, but quality of life goes a long way in my books!

I been living the life of a BMXer running my Ramp Park for 8 years. This Economy is finally taking its toll. A real job might be in my future, but I have never taken a day in the life for granted. Wealthy in the heart is more important but most of us have bills to pay and mouths to feed.
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