2021 governors tag

[pianoman9701]

If it helps wildlife conservation, all power to them. I hope to someday make the kind of money it takes for that to be "extra".

[huntnphool]

 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.

[Skyvalhunter]

Or not even have to work but go out and hunt till the end of the year would be nice

[nwhunter]

It might surprise some of you that these guys that like to buy these auction tags work every day and aren't trust fund guys sitting home on the couch... Most that I know work harder than most and have been smart enough with their money to be able to buy things they enjoy and these tags allow them to hunt more days and when they want.. I understand the different opinions on these tags and all that but most of the guys that buy them are good guys...

[OutHouse]

I have no animosity toward these tag buyers I just think to myself "Wow! I could have four mule deer for that kind of money". Its great the money goes to conservation.

[opdinkslayer]

What really pizz’s me off is the guys that get to go along with the guy with deep pockets that bought the tag & get the same experience other than pulling the trigger & hanging it on the wall!🙄     Couldn’t resist Scotty

[JimmyHoffa]

I think it is due in part to travel restrictions.  If these guys can't go spend $100-200K in Africa/New Zealand/Canada and still want to hunt critters with flexible seasons and a good shot of getting something big, then why not spend a year at home?

[HighCountryHunter88]

i wish there was a law saying that if 48k from this tag goes directly to the mule deer budget, then the administration can not subtract 48k that was previously allocated to muledeer for the year.

[Rainier10]

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.

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.

[Rainier10]

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.

This is why I would think the auction tags have the inflated value.  It's almost like you read my mind.    I have been on out of state hunts and having to make travel arrangements weeks in advance and then being on a schedule to get it done before your time runs out sucks.  Being able to hunt when you want at a moments notice and not having to leave the state is a huge bonus.  Plus you can have multiple buddies tag along on different days.

[idahohuntr]

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.

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).

[Rainier10]

I would contact your own tax preparer to confirm their opinion as it applies to your finances.

[jjhunter]

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.

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).

This!  From my federal taxation coursework, the basis is FMV.   You’d have to show that you paid more than FMV to write off the diff.  With tag sales there is sales history to establish relative FMV. I did not  attempt to use my Gov tag as a write off as I bought it at a relative bargain compared to historic sales.

[idahohuntr]

I would contact your own tax preparer to confirm their opinion as it applies to your finances.

Have you talked to anyone familiar with tax law that thinks what you said earlier is legal though? 

You said, "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."

I'm not trying to pick on you or your statements here...it's just inconsistent with the minimal knowledge I have of tax law.  As JJ notes, it seems the FMV of the tag is the basis for which a donation would be determined...so I am curious if tax savvy folks are just being really 'flexible' on the law and not being challenged in an audit...or if there is some precedent or loophole that is justifying such a determination?

Surely nobody knowledgeable of western big game hunting would suggest the FMV of say an eastern wa elk permit for any bull, any weapon, nearly every unit Sep 1-Dec 31 is $50.90?

[Alchase]

Sorry to disagree, I do not believe these bidders are being "altruistic" in any way shape or form. If they were, they would donate the money.
They just have the means to pay exorbitant prices to hunt when they want and where they want.
That does not make them good or bad necessarily, it makes them wealthy.

To disagree with auction tags, does not make you "jealous, of those who can afford them" it questions the "pay-to play" mentality all big game hunting is heading towards.