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How did yall setup your hunting clubs taxes? #9068624 06/28/24 02:06 AM
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Texas Fight Offline OP
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So my situation is similar to many hunting clubs. I am apart of 80 acres of generational land from the 60's. Many owners. We want to sell half of it and invest that money to pay for the taxes and electricty going foward. Its land for reunion gathering, no hunting. Curious how others set up there land and how they get away or limit taxes owed on generating profit from leasing, crops, etc. Non profit orginization. Charity. Any feedback is welcomed. We dont make money. Just want to use all profit to pay overhead. Thanks in Advance

Re: How did yall setup your hunting clubs taxes? [Re: Texas Fight] #9068737 06/28/24 05:57 AM
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Txduckman Offline
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Sounds like a fun idea. Not sure how it would be a non profit though!! Whose benefiting besides y'all? Heck my buddy claims his land is a non profit when he brings 4-H out there but he also has been indicted for tax evasion. Good luck!

Re: How did yall setup your hunting clubs taxes? [Re: Texas Fight] #9069138 06/28/24 09:38 PM
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freerange Offline
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I’m confused on your situation but that’s nothing new.


At some point in life its time to quit chasing the pot of gold and just enjoy the rainbow. FR
Keep your gratitude higher than your expectations. RWH
Re: How did yall setup your hunting clubs taxes? [Re: Texas Fight] #9069154 06/28/24 10:03 PM
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don k Offline
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If you spend more than you take in there are no taxes. Ag. or wildlife.

Re: How did yall setup your hunting clubs taxes? [Re: Texas Fight] #9069193 06/28/24 11:31 PM
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If the property is going to inure to the benefit of an individual it is not a tax exempt charity. It can be a 503(c)(7). Which is a social club. Contributions and membership fees are not deductible to the member. Even with a charitable organization, running a farm in it would be taxable if it generated income. The sale of the land would be taxable to the interest holders unless it was held inside the social club. I don't remember if that would limit capital gains taxes or not. I haven't been involved in this section of the code for several years. I would talk to someone who handles 501 C organizations.


With regards to selling part of the property. You can minimize you're capital gains in a couple of way. One, if it was inherited, each owner will have a different basis (read "cost") depending on when they inherited their undivided interest. Their basis is the FMV on the date of death of the decedent. Gifted interests use the basis of the grantor. It is a headache. I've gone back to land ownership that was gifted to multiple generations to get basis. Usually we end up just making an educated guess. Second, you'll want to allocate that basis between the property you are keeping and the property you are selling. For instance, if I had 100 acres with a highway frontage. And I sell the front part, I would allocate more of the basis to the section being sold than to the section kept. If I kept a portion that had structures on it, it would be hard to allocate more to raw land than to structures, but there are ways to do this. The reason you want to have a higher basis is that it minimizes the capital gains.

As far as land held by family member, you may want to consider a family limited partnership or a trust to hold the land. Again, I'd talk to someone who has some experience with this. There are several issues with just holding the land in an undivided interest. Interest holders can will or gift the land to non-family members. I had a client once who's brother gave his undivided interest to a cult. The client brother had to deal with the cult do do anything. It was a nightmare. A trust or FLP may alleviate those issues.

Good luck


No matter how high a duck flies a hammer still breaks a window.
Re: How did yall setup your hunting clubs taxes? [Re: jnd59] #9069220 06/29/24 12:22 AM
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Texas Fight Offline OP
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Intresting. Im going to use your story to scare the other owners to act. Thanks

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