Tax question

[Dan_ref]

Originally posted by grizwald
Finally, a topic on here where I'm the expert and not you guys.

Although most responses are on the money.

Gym membership is not deductible as a business expense (Sch C) or unreimbursed employee expense (form 2106) whether you are a ref, a pro athlete, or whatever. I can really see no situation where a gym membership would have a strict business purpose.

If a doctor prescribed a unique exercise regiment that you could only comply with by joining a gym. You could deduct it on Sch A as an itemized deduction for medical expenses. However your combined medical expenses each year must equal 7.5% of your Adjusted Gross Income before they are going to be deductible. So it really isn't going to help you much, unless you make very little income (from all sources) or it is a REALLY expensive gym that is medically necessary.

As I'm sure most of you know, expenses (including business mileage) for things with strictly business usage only. Like your uniforms, dues, classes, etc... are deductible. Assuming you guys are independent contractors rather than employees. Which I'm guessing you are, or at least most of you are. If you are an employee, Unreimbursed employee expense is deductible on form 2106, as a Miscellaneous Itemized Deduction. But Misc Itemized Deductions need to exceed 2.5% of AGI (again in total for each year) before they help you at all.

I wouldn't be filing your income from officiating on the line 21 "other income" on the front page of the return (as someone mentioned). I would only show gross amounts on that line, meaning with no deductions taken against the income. And I certainly wouldn't be ignoring legitimate deductions. You need to be filing a Sch C.

Although most of you already nailed the answer. I felt like I needed to jump all over this thread. Forgive me.

-Mike Clark
Certified Public Accountant

Thanks Mike! Good stuff.