There are a lot of deductions that a professional Athlete can deduct that may be missed. If one was able to correctly substantiate these expenses, taxable income can dramatically decrease allowing their total tax to go down.
Consider ‘trainer fees’, an athletes job may require him or her to maintain peek physical performance during the year. They may pay a personal trainer to improve and maintain their health and appearance. You can even deduct membership fees to gym memberships as long as they are required to keep the athlete in great physical condition required by the team.
Union dues and Agents Commission and Fees. There usually is a percentage rate that is fixed to the salary of the athlete. These fees can be deemed ordinary and necessary for their trade or business.
League Fines may be paid by an athlete due to violations of the league. Latrell Sprewell of the New York Knicks at the time failed to report a fractured hand and was fined a whopping $250,000. These fees are argued by the players as ordinary and necessary expenses incurred during work and therefore should be deductible under IRS S Code § 162.
Residency is a crucial topic when discussing multi-state returns for athletes. Accurate Financial Services highly recommends to document and create a fool proof plan in case of an IRS audit. Tips to help could be but not limited to: attain a drivers license in that state, register to vote, opening a bank account in that state, register your vehicle to the state, and live in the state for most of the year.
For more information on the services that we can help provide for professional athletes and entertainers, please do not hesitate to call or email us. (626)-355-1242 AccurateGen@Gmail.com