Tax write offs

[ca_rumperee]

up from 48.5 cents last year.

If you use this, it covers all costs relating to the vehicle... I can't claim the mileage AND the tune-up. The mileage rate includes the tune-up.

Wert.

[Bad Zebra]

By all means consult a professional before taking home office deductions. Specific criteria apply and a very big red flag for examiners once you mail it in.

[jdw3018]

Originally Posted by ca_rumperee

up from 48.5 cents last year.

If you use this, it covers all costs relating to the vehicle... I can't claim the mileage AND the tune-up. The mileage rate includes the tune-up.

Wert.

Yep...and for the return you're working on right now, use the 48.5. That covers the cost of fuel AND wear and tear, which is why rumperee is correct that you can't deduct mileage and your maintenance costs.

[Odd Duck]

I also believe, check with your tax professional, that all mileage is NOT deductible. For example, the miles you drive commuting to work is not a deductible business expense. Therefore, it MAY be successfully argued that the miles from your "real" job to the game site and home are miles driven to and from your "second" job.

An accountant (MBA in accounting, not yet a CPA) told me that one way to possibly get around that is to formally set up a business with your home address since the most miles driven (for me) occur during summer ball. By having a formal business entity I can get up in the morning...check this forum, read over each POE, check a couple of things in the case book, verify directions to the tournament site, etc. (all a legitimate part of an officials duties), then drive to the site. Technically, I started my responsibilities as a basketball official at my home office (even though I don't take that deduction) and the drive to and from the site are most certianly an unreimbursed business expense.

All of that may be possible without an EIN from the IRS, but getting the EIN takes about 2 minutes and cost nothing.

It all comes down to keeping your receipts and maintaining good records. If you don't try to get creative, you should not have problems. Remember to show a profit occassionally (I think it is at least once every three years) or officiating will be considered a hobby and the expenses will no longer be deductible.

[jdw3018]

Originally Posted by Odd Duck

I also believe, check with your tax professional, that all mileage is NOT deductible. For example, the miles you drive commuting to work is not a deductible business expense. Therefore, it MAY be successfully argued that the miles from your "real" job to the game site and home are miles driven to and from your "second" job.

As an independent contractor you won't have any problem claiming your mileage. The commuting to the office issue applies to everyone driving to a "real" job with a real office.

What this thread really does point out, however, is how important it is to get all this right. The IRS is not a fun dog to poke - even if it is accidentally.

[MadCityRef]

Whenever my wife comments that I work a lot of games, I remind her of the tax deduction every year. I'm always in the negative because of the mileage.
( , that could be a selling point to get more officials.)

If you do make a profit, you also need to pay the Self Employment Tax.

Mileage to/from meetings, clinics, games. Percentage of the cel phone bill and internet. Video tapes/dvds, Datebook, Ref magazine/NASO, Dues and fees, Tolls, Gear. (I have an office too.)

It adds up. Have receipts.

My next license plate:: SHDL C ROX

[Blue37]

Laundry/Dry Cleaning

[26 Year Gap]

Kramer is the expert on write-offs. He is often quoted here.

[Mark T. DeNucci, Sr.]

Here is a short list of deductions for officiating for this year's Schedule C:

Lines 1, 3, 5, and 7: These lines all should be the same; the total amount of game fees for the year.


Now for the deductions:

Line 9: Automobile expenses including: mileage, parking, and toll road fees.

Line 15: Insurance: liability, game fee loss protection, and suplemental health insurance that is specific for officiating injuries only.

Line 16b: Interest: If you are making payments on the automobile you use for officiating, you can pro-rate the amount of interest that you paid for the year on the car loan.

Line 17: Legal and professional services: Lawyers' fees, accountant fees, any out of pocket medical expenses that are related to your officiating that is not covered by your primary health care insurance or your supplimental medical insurance (for sports officiating only).

Line 20a: Automobile rental.

Line 21: Repairs and maintenance.

Line 22: Supplies.

note: For Lines 21 and 22, one should check the Schedule C instructions.

Lines 24a and 24b: These lines are self-explainatory. Check with the Schedule C instructions.

Line 27 and 48:

membership dues (officials' associations)
registrations fees (StateHSAA, FIBA, ASA, USSSA, etc.)
assingnors fees
uniforms
laundry/drycleaning
postage
education
publications


MTD, Sr.

[WhistlesAndStripes]

Originally Posted by MadCityRef

Whenever my wife comments that I work a lot of games, I remind her of the tax deduction every year. I'm always in the negative because of the mileage.
( , that could be a selling point to get more officials.)

If you do make a profit, you also need to pay the Self Employment Tax.

Mileage to/from meetings, clinics, games. Percentage of the cel phone bill and internet. Video tapes/dvds, Datebook, Ref magazine/NASO, Dues and fees, Tolls, Gear. (I have an office too.)

It adds up. Have receipts.

My next license plate:: SHDL C ROX

Always in the negative because of the mileage? Are you kidding me? I don't see how this is possible.

As a CPA, I won't give any specific tax advice here, but what I will say is, be very careful about which advice from this board you follow. Some of it is good. Some of it is not so good. Just make sure that it will pass scrutiny in the event of an audit. The best way to be sure of that is to pay someone lots and lots of money to prepare your taxes for you. Mine were efiled last weekend, and I should be getting my nice fat check from Uncle Sam direct deposited next week.

[bob jenkins]

Originally Posted by Whistles & Stripes

Always in the negative because of the mileage? Are you kidding me? I don't see how this is possible.

I agree, and I think (but I am not a tax expert, nor did I stay in a HolidayInn Express last night) that you need to occasionally (something along the order of 1 in three years) declare a profit or the IRS might / will decide that this is a hobby and not a business.