Chase business
Storm chaser taxes
Selling chase content changes your tax situation. Here is what actually deducts, what to structure, and how to avoid audit trouble.
The threshold question
Are you a hobbyist or a business?
Hobby
Chase for fun. Income under $500/year. Expenses NOT deductible.
Business
Regular income intent. Expenses deductible. Losses may offset other income.
IRS 3-of-5 rule
Profit in 3 of 5 consecutive years to remain a business.
Business structure options
Sole proprietor
Simplest. Schedule C on personal return. Personal liability.
LLC
Liability protection. Pass-through taxation. Popular for chasers.
S-Corp
Salary + distribution. Self-employment tax savings. More complex.
Partnership
For team chases. Multiple owners.
C-Corp
Rare for chasers. Double taxation.
What deducts
- Vehicle — mileage (67 cents/mile 2026) OR actual expenses.
- Fuel — for business miles.
- Vehicle repairs — hail damage, tires from chase.
- Cell phone/data — business use portion.
- Cameras and gear — Section 179 or depreciation.
- Drones — same.
- Editing software — Lightroom, Premiere.
- Radar apps — RadarScope, GRLevel3.
- Ham radio equipment — for chase-work.
- Chase supplies — food during chase days, hotel.
- Meals — 50% deductible.
- Travel — hotels, flights for chase.
- Home office — if regularly used for editing/business.
- Continuing education — Skywarn, AMS courses.
- Health insurance — self-employed.
- Insurance premiums — business auto, liability.
- Professional fees — accountant, lawyer.
- Marketing — website, social media ads.
What doesn't deduct
- Chase for pure enjoyment (hobby).
- Fines from tickets.
- Life insurance for owner.
- Political contributions.
- Non-business meals.
- Personal clothes.
- Home meals during chase (not business travel).
Mileage vs actual expense
Mileage method
67 cents/mile (2026). Simpler.
Actual expense
All vehicle costs pro-rated by business use. More complex.
Choose one
Cannot switch back and forth within a year.
Which is better
Depends on vehicle. Old paid-off vehicles often mileage. New expensive vehicles often actual.
Section 179
- Deduct full cost of qualified assets in year of purchase.
- $1,160,000 limit (2026).
- Cameras, computers, vehicle over 6,000 lbs GVW.
- SUV/truck deduction complicated.
- Great for large equipment purchases.
Home office
- Regularly and exclusively used for business.
- Two methods: simplified ($5/sq ft up to $1,500) or actual expenses.
- Actual: prorate mortgage/rent, utilities, insurance.
- Photography workflow, editing, forecasting = qualifying use.
- Do NOT double-dip if renting.
Recordkeeping
- Separate business bank account.
- Separate business credit card.
- Mileage log — MileIQ, TripLog, or manual.
- Receipt tracking — Expensify, QuickBooks.
- Chase log with dates, locations, purposes.
- Income invoices.
- Tax documents in cloud (Google Drive, Dropbox).
- Retain 7 years.
Self-employment tax
- 15.3% on net earnings.
- Half is deductible.
- Quarterly estimated payments required.
- January, April, June, September due dates.
- Underpayment penalty possible if you skip.
The QBI deduction
- Qualified Business Income Deduction.
- Up to 20% off pass-through income.
- For chase LLCs and sole proprietors.
- Income limits apply.
- Consult an accountant.
When to get an accountant
- If income exceeds $10,000 from chasing.
- If you form an LLC.
- If audited.
- If depreciating major assets.
- If chasing internationally.
- If you have employees or contractors.
- When in doubt.
Audit red flags
- Hobby-vs-business loss pattern.
- Big travel deductions without documentation.
- Home office without legitimate use.
- Meals over 50% deducted.
- Vehicle 100% business (rarely realistic).
- Barter income unreported.
- Late 1099s.
International chase considerations
- Foreign income reportable if US citizen.
- Foreign tax credit for taxes paid abroad.
- FBAR if foreign account over $10k.
- Chase tours abroad have permit issues.
- Argentine chase: additional consideration.
For the professional chaser
- Form LLC year 1-2.
- Get EIN.
- Business bank account.
- Track everything from day 1.
- Accountant by year 2.
- Health insurance separate.
- Retirement account (SEP IRA, Solo 401k).
- Umbrella liability insurance.
- Keep hobby-business distinction clear.
- File taxes early.