Good info Mark.

Another thing some aren't aware of is the NOOA documentaion required for commercial and charter boats.

https://fisheriespermits.noaa.gov/npspub/pub_cmn_login/index_live.jsp

 

Good stuff Mark, thanks for the reminder.

 

Mark I have everything on the check list except the survival suits. So I can buy two survival suits pay the $252 license fee get inspected and start selling my Tuna catch. Based on last years numbers it looks like Albacore was selling for a little over $1 per pound. With fuel cost I would need to catch at least 300-400lbs per trip to break even. Or I can stay a sport fisher and make all my family and friends happy when I give them tuna!😀

I guess you might be able to write off boat cost, would have to check with my tax accountant on that one?

 

I think that after the initial flurry it was closer to $o.85 per pound spiked and bled.

 

You can write off all tackle, boat costs, fuel, marina costs, truck mileage, insurance, and depreciate the boat......rain gear, tackle , ice , totes...and all costs associated with the business.

It is a pain though and after a few years , called it quits.

If you get the dealers lic., advertise, sell for more. We only sold for 1.00$ and was undercutting everyone, but we just wanted to offset fuel.
We usually had at least thirty and seventy once, which was 500 to over a thousand on the best days.

My guess is there is a lot of garage sales, and who really cares? It isn't really none of my business. About five fish a year is all I need now.

 

You can write off all tackle, boat costs, fuel, marina costs, truck mileage, insurance, and depreciate the boat......rain gear, tackle , ice , totes...and all costs associated with the business.

Don't forget that in order to write all this off which will probably produce a loss, you have to have some sort of profit motive. If your costs are not low enough and you boat isn't big enough you don't have a profit motive and the hobby loss restrictions can catch you by surprise.

https://www.irs.gov/uac/Is-Your-Hobby-a-For-Profit-Endeavor?

 

Even on the best season bringing home tuna in the hundreds. My friends and family have no problem eating them all. I'd hate to try to offset the cost of my hobby and create more work for myself when there are guys out there trying to make a living at it.

 

If I recall, this falls under the guidelines of agriculture and you don't have to show profit, and even if you do, it is not a requirement for a period of time.

That was challenged once in the courts, because there were different requirements for big long term companies who would look at years before the profit and requirements for the private sector.

Most have a second income and it is all thrown together, and if the laws is there, use it, I figure. I always told the accountant that I want to be legal, and accurate.......but if they made some stupid law, use it, if they don't like it they can change the law.

It would be good to find a good accountant and ask all the right questions, I am not expert on this and was not involved very many years.....tuna burn out.
It happens..........but there are some real men , who are still doing it.

 

There is virtually no way to have a permit and not know this info. Odfw furnishes all pertinent info. You are given current commercial regs at the time of purchase.

 

Jon, by "current commercial regs" are you referring to the (State of Oregon) commercial fishing regulations? Do they provide anything else? tx

 

Mark I bave not done this in years but to the best of my knowledge all vessels operating in US waters must meet current coast guard regulations. Sport and commercial.

 

Start an LLC. Let it own the boat and all the gear. When you go out and are not commercial fishing then you rent the boat from the LLC.
:grinning:
LLC writes off the expenses against the income of fish sale and rent.What's funny is this is probably entirely legal.

Have a good friend who bought part ownership in a fishing lodge. He sold his boat to his LLC.
(He got top $ for the boat too:wink
But yes, he technically was not allowed to take it on private other trips etc. and write off those expenses.

 

CQ requirements are here.

http://www.uscg.mil/d13/cfvs/test/1ChecklistCover.html

 

I see ODFW sells two licenses for this. One says Commercially Licensed Boat and goes for $27. The other is for unlicensed boats that goes for $252.

If someone gets the $252 license do they still have to get the coast guard inspection?

Not interested in doing it. More curious than anything.


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Read the last link in the first post. If you engage in ANY commercial fishing, including the use of a limited tuna sellers permit, you are bound by all the Coast Guard regs for a commercial boat that apply to the size & type of boat, and area of operation. The checklist generator will tell you the specific items. The list will always be much longer than for a recreational boat.

 

We have just gone around in a big circle :applause::laugh: !


My original post has the link to create the checklist which shows all the Coast Guard requirements for a commercial fishing boat. Open up one of the PDF's to see a sample checklist.


My impression is that.... there are folks running around out there who are fairly new to commercial fishing (using small boats) who are either unaware of the Coast Guard requirements, or they are ignoring some of the requirements. These may be the same people who are using recreational boat insurance instead of commercial insurance.

 

I have done considerable research on commercial fishing for tuna for another book I'm writing. All is not roses in this deal, it is quite expensive to get set up and slow on the return of investment. First, you need a commercial vessel license, that is $352.00. Then you need a tuna landing license which is $27.00. Next you need a HIGHLY MIGRATORY SPECIES license, free but you must maintain the log or you could loose your boat and pay steep fines. Then you need to complete the USCG checklist. You must buy and maintain the required equipment on the list, Life raft, EPIRB, survival suits for everyone onboard Etc.. Then you MUST complete the Required USCG inspection. If you don't, again you run the risk of serious fines and or boat confiscation.
Next the gear, to be effective trolling, you need a setup that enables you to keep catching and trolling. The more lines in the water the better your chances. Rod and reel is not effective, you can't effectively reel in tuna and keep on trolling which means hand lines. Hand lines almost make outriggers a necessity, 2-3 hand lines of either side, two hand lines off the back and a far back hand line. Next, unless you are a young guy who can haul lines by hand all day rain or shine, you need at least one puller, either hydraulic or electric. Hydraulics start at around 6k, electrics state at around $1700.00. Hydraulic is faster which equates to more $$ in the fish box. You can use conventional gear, but you need to make $ to pay for your "investment" which is what you called it when you talked the wife into your latest scheme [emoji56]
Finally, the biggest hurdle, selling your fish. Everybody "says" they want your fish, but in the heat of the summer you come in and there are at least three 40' trollers at the dock of every cannery, and now, they don't want your fish. Fine you say, I will just get a limited sellers permit for $102.00. With the limited seller permit you are allowed to sell fish off your boat at the dock. You cannot take those fish you just caught home and sell them to your friends! If you take those commercially caught fish off your boat, to sell to someone at home because they don't want to drive over and pick them up, and you get pulled over by a state trooper for a unrelated event, you can forfeit your vehicle, boat and pay some serious fines $$$. So, to get around that, you buy a wholesale Dealer license for $502.00.
You can now sell yourself the fish you just landed, meaning more paperwork (don't you just love big government), and haul them home to sell to your friend. But wait, your friends want them fillet'd, not in the round, after all, how many people know how or even want to fillet their own fish? Now you need a permit/license from the USDA to legally process food, which involves an inspected kitchen.... Just love it when big government takes yet another slice out of your pie.
Maybe I will just go fishing for me...



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this is why most companies go overseas. It's not because of high wages in america, it's because the regulatory branch of the government is the largest most powerful branch now. It's completely out of control. You have similar overreach in all industries. This is why we don't manufacture anything in the USA anymorealm:

 

Oh, I forgot that the required scales need to be government certified 😏

 

Oh, I forgot that the required scales need to be government certified �

I agree with your implied outrage about scales. I can't understand why a fishermen can't be trusted to tell a customer the correct weight of the fish being sold.

 

To clear the air, I wasn't complaining about the scales, or the regulations. OK, maybe just a little bit... 😬 The point I was trying to make is this: If you are thinking of selling fish out of your pickup, garage, off an unlicensed boat, the end result could give you hemmorroids. It is no different than shooting an elk out of season, flossing salmon or any other game violation. If you get caught, you will pay the price and it is pretty steep! Any vehicle involved, your boat, your rig, your house are all up for grabs! Not to mention the fines and jail time, loss of fishing and hunting rights Etc...
Ask yourself, is it worth it?