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Taxes and training (Read 887 times)


ultramarathon/triathlete

    I'm wondering if I can deduct race-related or training-related stuff (entry fees, gear, etc) from my taxes since I am a sponsored athlete and a coach, and am getting paid by a team to coach.  Is there any way I can claim workout-related things as deductions, like, as necessary for a secondary job? 

     

    I have an accountant but want to go to him with some background first.  And he's old, doesn't email and keeps really weird hours, so I can't easily ask him.

     

    Thanks!

    HTFU?  Why not!

    Coach: Empire Tri Club 

    Speed Coach: Brooklyn Tri Club
    USATF Coach

    DoppleBock


      In 2010 I had $2,300 running related income.  I filled out a schedule C for running and deducted $2,300 of shoes, clothes and nutrition related to my schedule C business of running.  I did not need to go into the race fee, travel categories of expense because I had enough expense without it.  Since my schedule C is based upon a cash basis (Not accrual Basis) it was pretty easy to get enough expenses.  I had @ $900 for shoes, $600 for clothes and $1,200 for Gels, Endurox, Whey Protein and S-caps.

       

      If you are racing in races related to your sponsorship you should be able to take travel and race fees.  I would take mileage at the IRS guidelines (But you must document your business trips) and any parking, airfare, hotels at actual expense (Make sure you have your receipts).

       

      If you are coaching at consider your home your base of business then you should also be able to track mileage to meet you athletes (Must have documentation).  If you are coaching say for a highschool - The highschool is your base of business and you can not take mileage to and from the highschool, but can claim unreimbursed mileage to meets etc.

       

      I'm wondering if I can deduct race-related or training-related stuff (entry fees, gear, etc) from my taxes since I am a sponsored athlete and a coach, and am getting paid by a team to coach.  Is there any way I can claim workout-related things as deductions, like, as necessary for a secondary job? 

       

      I have an accountant but want to go to him with some background first.  And he's old, doesn't email and keeps really weird hours, so I can't easily ask him.

       

      Thanks!

      http://a-big-horse.blogspot.com/ 

      2013 Goals ~ Mar < 3:00, 5M < 29, 10k < 35  

       


      just a simple cat

        You might need a different accountant too.  (no email???  Shocked Wink

         

        I  guess as you get more bodacious, you begin to lose more brain cells, because there is a limit to how much magnificence your body can house


        ultramarathon/triathlete

          So one of my sponsorship includes clothing (used to have shoes too, no longer, sadly) that I have to wear in a certain amount of races (I think a min of 3 but it can be as many as I want).  I also have to show up to some events or volunteer at some event wearing the clothes.

           

          My other sponsorship also includes clothes (again no shoes) and the same deal, must race in a certain amount of races.  I also must show up 2x a week to coach the team on runs.  3x a week in the warm months.  It also waves the club fee (which would otherwise be $500/yr).  So, could I claim that as being paid $500 that I then use to pay the club fee?  Could I claim the amount the clothes cost stating they "pay me" (hypothetically) $1,000 but I use that $1,000 to buy the team kit?

           

          My 1 on 1 coaching does require travel from my home to central park (via subway).  That pays cash.  I already get a subway card pre-taxed from my regular job so I suspect I can't deduct that.

           

          I keep receipts for everything (especially since I was hoping to deduct them).  As for the amount I can deduct, is it based on the amount of cash I made (which seems like what you pointed out in your post).

           

          And how to I declare a schedule C?  Is that something I just fill out with my tax guy when we sit down (sometime next month)?

           

          Can I deduct more than I make and declare a loss?

          HTFU?  Why not!

          Coach: Empire Tri Club 

          Speed Coach: Brooklyn Tri Club
          USATF Coach


          ultramarathon/triathlete

            You might need a different accountant too.  (no email???  Shocked Wink

             

            Ha, yes, he is very old.  He's great though.  The first year I ran my taxes via turbotax as I used to.  Then I decided I'd give him a try and he saved me thousands of dollars. Or rather, my return was several thousand more than I could get doing it myself with no tax knowledge.  I've since recommended him to several friends who now swear by him.   He's very by-the-books but he just knows a lot of stuff.  

            And he is really, really weird.  I think he's up at 3am and in bed by like 7 pm, by choice. 

            HTFU?  Why not!

            Coach: Empire Tri Club 

            Speed Coach: Brooklyn Tri Club
            USATF Coach

            DoppleBock


              No net loss - Expenses only to amount of income

               

              I would not declare anything that I do not have to ~ Legally you should declare all cash received from coaching, but most will not unless they receive a 1099.

               

              If you get comped an entry to the club ~ It makes no sense to declare it and then expense it ~ you never actually paid anything.

               

              I declared the $2,300 because my sponsor sent me a 1099 for $2000 and a race sent me a 1099 for $300 ~ I have no idea why they did for $300 as they would not have to - its under the limit.  So the government was aware of all on my running related income of $2,300.

               

              A Sch C is for a business run by a sole proprietor (Compared to a S-Corp, C-Corp, PArtnership or limited liability company).

               

              Many people have home based businesses they report as Sch C - ITs been around forever and the tax guy will now what to do.  Again - I would have all receipts in order for any running related purchases:  Race fees, clothing, nutrition and travel (Receipts - not a listing) and a schedule of all the mileage for the business on a vehicle.  So Home to Race A = 125 miles, round trip = 250 miles.  He will understand how to apply the standard mileage rate.

               

              Just do not overcomplicate things.

               

              The US Team said I had to wear their uniform and travel in their clothes - I got their clothes - No 1099 - No reporting.  The 24 hour race paid for our hotel and some of the food - just offsetting of expenses - no 1099, no reporting.  The USATF reimbursed us for $750 of travel expenses for the trip (Based upon actual receipts) Reimbursment of actual expenses - No need to report.

               

              Step one - Do you have reportable income?  If no - Do not complicate things trying to report it.

              Step two - Make sure you have enough expenses to offset all reportable income

              Step three - Report all reportable income and expenses on Sch C to nullify any tax impact of said reportable income.

              http://a-big-horse.blogspot.com/ 

              2013 Goals ~ Mar < 3:00, 5M < 29, 10k < 35  

               


              ultramarathon/triathlete

                Excellent!  Thanks for the advice! 

                HTFU?  Why not!

                Coach: Empire Tri Club 

                Speed Coach: Brooklyn Tri Club
                USATF Coach


                Menace to Sobriety

                  It's also best to have some sort of formal written business plan if you're going the Schedule C route. It doesn't have to be all that intricate, but in order to use Sched C, you have to be doing whatever it is you do with the intent of making money.  Otherwise they'll likely consider it a hobby, and you'll only be able to claim losses up to the amount you make. The business plan lines out how you intend to do this and carries some weight with the IRS in the event of an audit.  Sched C will allow you to claim losses, but you have to show profit 3 of 5 years, or something like that. If you don't, I think they can go back and disallow previous year's write offs.  It's been a while, but I tried pro bass fishing for a few years and had to do all this. I'm sure the rules have changed since then. Your accountant will know all this. Accurate and timely record keeping is also important. Don't try to gun deck all that stuff in last minute. Good luck.

                  Janie, today I quit my job. And then I told my boss to go f*** himself, and then I blackmailed him for almost sixty thousand dollars. Pass the asparagus.

                    I think these types of claims increase your rate of audit by something on the order of 500-1,000%.

                     

                    So if you are saving $100 I'd say forget the hassle because you may regret triggering an audit, even if you are totaly correct in all your math.  Now if you're saving a lot more than go for it. 

                    In an infinite universe, the one thing sentient life cannot afford to have is a sense of proportion

                    http://htwins.net/scale2/scale2.swf?bordercolor=white&fb_source=message

                     

                     

                     


                    day after day sameness

                      Geez, more freakin' 1%-ers trying to get your tax rates down with tricks and your fancy odd-hour accountants....

                       

                      Wink

                      Choosing my words carefully has never been my strength I've been known to be vague and often pointless


                      Menace to Sobriety

                        I think these types of claims increase your rate of audit by something on the order of 500-1,000%.

                         

                        So if you are saving $100 I'd say forget the hassle because you may regret triggering an audit, even if you are totaly correct in all your math.  Now if you're saving a lot more than go for it. 

                        +1

                        Janie, today I quit my job. And then I told my boss to go f*** himself, and then I blackmailed him for almost sixty thousand dollars. Pass the asparagus.

                          I think these types of claims increase your rate of audit by something on the order of 500-1,000%.

                           

                          So if you are saving $100 I'd say forget the hassle because you may regret triggering an audit, even if you are totaly correct in all your math.  Now if you're saving a lot more than go for it. 

                           

                           -1

                           

                           I'll be dammed if I'm gonna pay more than my share of taxes, as defined by the IRS tax code, just because I'm afraid of an audit.  Play by the rules as they are written, keep accurate, documented records and you'll be fine.

                             -1

                             

                             I'll be dammed if I'm gonna pay more than my share of taxes, as defined by the IRS tax code, just because I'm afraid of an audit.  Play by the rules as they are written, keep accurate, documented records and you'll be fine.

                             

                            You think deducting running expenses as a business expense is playing by the rules?

                              You think deducting running expenses as a business expense is playing by the rules?

                               

                              I think it is if you derive income from running.  (Ha ha, I wish.)

                              Well at least someone here is making relevance to the subject.

                                Huh. (kosher dave, are you paying taxes on that income? If not, then should you be getting tax breaks because of income?) Seems like the answer would be as simple as that to me, but one thing's for damn sure--I'm not an accountant.

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