Free: Contests & Raffles.
Most of the time these tags are a tax write off also since they’re donated to conservation groups. It’s inner circle back scratching for the wealthy.
Some of you are blinded by jealousy! A lot of local bidders look at it as a tag that allows you to hunt every day, whenever or wherever you feel like it, until the end of the calendar year. Sure they are hoping to tag a giant/“trophy”, but just the fact of being able to grab your weapon and hit the woods after or before work for a hour or two, is worth the price of the tag.
Quote from: meatwhack on February 16, 2021, 03:41:39 PMMost of the time these tags are a tax write off also since they’re donated to conservation groups. It’s inner circle back scratching for the wealthy.Auction tags are what this thread is about and I don't want to muddy the waters with raffle tag tax implications, those are trickier.Auction tags are being bought for more than an elk tag normally sells for so everything over the price of a regular elk tag is considered a donation. Whatever you donate comes off of your income because it is no longer income. Most guys that are bidding on these tags are in the highest tax bracket so every $100,000 they make during the year they pay $37,000 to the government in income taxes. If you spend $100,000 on an auction tag $100,000 still comes out of your pocket but the feds don't get the $37,000. That $37,000 was gone no matter what when they made the money so in their mind the tag only cost them $63,000 because they were never going to see the $37,000 anyways.
Quote from: Rainier10 on February 17, 2021, 02:21:41 PMQuote from: meatwhack on February 16, 2021, 03:41:39 PMMost of the time these tags are a tax write off also since they’re donated to conservation groups. It’s inner circle back scratching for the wealthy.Auction tags are what this thread is about and I don't want to muddy the waters with raffle tag tax implications, those are trickier.Auction tags are being bought for more than an elk tag normally sells for so everything over the price of a regular elk tag is considered a donation. Whatever you donate comes off of your income because it is no longer income. Most guys that are bidding on these tags are in the highest tax bracket so every $100,000 they make during the year they pay $37,000 to the government in income taxes. If you spend $100,000 on an auction tag $100,000 still comes out of your pocket but the feds don't get the $37,000. That $37,000 was gone no matter what when they made the money so in their mind the tag only cost them $63,000 because they were never going to see the $37,000 anyways.Is that really consistent with tax law? I'm sure people do it all the time, and chances of getting caught/audited, and an auditor being savvy to western big game tags is low...probably nearly non-existent...but if someone buys a governors tag for 100k and suggests the FMV is the price of a regular tag for that species...that doesn't seem right. A sheep draw tag costs $332 in WA. I find it hard to believe that someone buying a sheep auction tag could make a legal case that everything they paid over $332 is a donation. Now, someone who buys a general season WA eastern modern firearm elk tag (the same one anyone can buy) at some auction...any amount they pay over $50.90 (the standalone resident price)...I would see that as a donation that could be claimed...but not these tags which provide an extremely limited opportunity to very valuable wildlife (e.g., governors tags).
I would contact your own tax preparer to confirm their opinion as it applies to your finances.