Tax write offs

[shaggytyson]

Hello everyone.
I was wondering how you would write off certain items for being an official? Can someone help me out? Are we called an independent contractor?? And what can we write off??

[Back In The Saddle]

Uniforms, membership dues, training materials, periodicals, camps, sometimes mileage.

[grunewar]

Keep all of your receipts and track your mileage.

While I'm sure I don't make near the $ some of these folks do, I use a Schedule C.

See a Tax Accountant if you really have questions.

[Coltdoggs]

Indie Contractors yes...if you get 1099 from the leagues/schools/associations you work. I believe the amount earned of $600 or more from one will land you a 1099 in which you must report it and if that's the case, see if your tax person will include stuff I list below...

My tax lady writes off my mileage, expenses related to uniform (shoes, shirts, pants, knee brace ). I'm guessing travel expenses could be included but I've never gone far enough that an overnight or meals were necessary for me to report.

[Indianaref]

Originally Posted by Back In The Saddle

Uniforms, membership dues, training materials, periodicals, camps, sometimes mileage.

Massages?

[bob jenkins]

Originally Posted by Coltdoggs

Indie Contractors yes...if you get 1099 from the leagues/schools/associations you work. I believe the amount earned of $600 or more from one will land you a 1099 in which you must report it and if that's the case, see if your tax person will include stuff I list below...

You will get a 1099 if you earn more than $600 from any organization. You are required to report all the income, even if you don't get a 1099.

[Bearfanmike20]

Technically...

you can write off your computer if you buy a new one to use for keeping track of your books,

You can write of the area of your house that is your work space. Its done by square footage.

Any maintenace on your car... Deductable.

[jdw3018]

Originally Posted by Bearfanmike20

Technically...

you can write off your computer if you buy a new one to use for keeping track of your books,

You can write of the area of your house that is your work space. Its done by square footage.

Any maintenace on your car... Deductable.

While all these things have potential for deduction, they all come with pretty specific rules that you want to pay attention to.

Just as an example, maintenance on your car is only deductible if you are taking the "actual" cost route - for most officials, deducting mileage is a much more cost-effective way to go about your tax work.

Computers have specific depreciation rules you need to know, and the home office deduction is only applicable if the room you use for your office is only your office.

Be careful - keeping it simple and not getting audited will do you a lot more good than trying to squeeze blood from a turnip and getting flagged by the IRS...

[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