Quote:
Originally posted by Kevzebra
Quote:
Originally posted by ChuckElias
Quote:
Originally posted by Kevzebra
Sounds like you need a tax advisor! I made over 10 k due to sporting events (officiating) last year and paid 0 taxes on the income.
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Assuming that you did this legally, Kev, how in the world did you rack up $10k in expenses? Are you traveling to games by plane, and paying your own airfare?
And would you really rather pay out $10k in expenses, rather than make some profit and pay tax on it? I'm clearly missing something important here. . .
I know I have a reputation as being sarcastic, but these are honest questions. I can't imagine incurring that much in expenses.
chuck
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Well, I did travel over 17,000 miles last year in my car. Take that and multiply by .36 per mile (the allowable deduction per the IRS) that totaled to over $6,400. Then there is the other allowable expenses (consult your IRS 1040 book) and a few nights in a hotel, some airfare, meals on the road (1/2 of that expenditure), shoes, uniforms...and poof...the income is gone. You have to figure if you travel 70 miles roundtrip, the deduction is $25.20. If you game fee was say $55, you have already taken a 40% deduction in the game fee. Add $4-5 for a meal, drycleaning your uniforms (about $5-7 per time) and the income dissapears rather rapidly. Camp fees and expenses during the summer also eat up a good portion of the income. Plus the hotel, mileage and food for that.
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Isn't mileage only deductable if you drive from work (place of business to place of business) to a game? Sounds like you're deducting all mileage.
BTW, I report all my game income (cash too!) on schedule C and most of it does disappear due to expenses. But a while ago a tax "expert" told me that the IRS likes to see some profit eventually, that's one thing they look at distinguish a "hobby" from a "business". Comment?
Oops, just saw Bob's post on business vs hobby.
[Edited by Dan_ref on Mar 31st, 2003 at 09:03 AM]