Rstanley0312 1 #1 August 1, 2012 Because it could turn into a discussion around taxes I put it here. http://www.weeklystandard.com/blogs/go-gold-pay-irs_649187.htmlLife is all about ass....either you're kicking it, kissing it, working it off, or trying to get a piece of it. Muff Brother #4382 Dudeist Skydiver #000 www.fundraiseadventure.com Quote Share this post Link to post Share on other sites
Southern_Man 0 #2 August 1, 2012 That article just lazily assumes that the athletes prize money will be taxed at a 35% marginal rate. Although some of the high profile athletes in the higher profile sports may have incomes that put them in the 35% bracket, there are a lot of athletes that are not going to be earning that--can't imagine a synchronized diver is going to have those sorts of earnings. Britain had to pass special tax rules for the Olympics. They usually attempt to tax athletes on prizes earned on British soil and also tax them on a portion of their worldwide endorsement income. They have sometimes had a hard time attracting athletes to compete because of this situation (Usain Bolt is a notorious example)."What if there were no hypothetical questions?" Quote Share this post Link to post Share on other sites
kallend 2,150 #3 August 1, 2012 QuoteBecause it could turn into a discussion around taxes I put it here. http://www.weeklystandard.com/blogs/go-gold-pay-irs_649187.html Why should Olympic athletes be treated any differently than pro golfers, pro wrestlers, pro footballers, pro baseballers, pro basketball players, pro NASCAR drivers...?... The only sure way to survive a canopy collision is not to have one. Quote Share this post Link to post Share on other sites
rehmwa 2 #4 August 1, 2012 QuoteQuoteBecause it could turn into a discussion around taxes I put it here. http://www.weeklystandard.com/blogs/go-gold-pay-irs_649187.html Why should Olympic athletes be treated any differently than pro golfers, pro wrestlers, pro footballers, pro baseballers, pro basketball players, pro NASCAR drivers...? they shouldn't, if they get income, that income should be taxed like everyone else However, I suspect, they could establish themselves as a small business - then i'm sure they could write off a lot more than they take in - so in those terms, that article is a bit one sided ... Driving is a one dimensional activity - a monkey can do it - being proud of your driving abilities is like being proud of being able to put on pants Quote Share this post Link to post Share on other sites
kallend 2,150 #5 August 1, 2012 QuoteQuoteQuoteBecause it could turn into a discussion around taxes I put it here. http://www.weeklystandard.com/blogs/go-gold-pay-irs_649187.html Why should Olympic athletes be treated any differently than pro golfers, pro wrestlers, pro footballers, pro baseballers, pro basketball players, pro NASCAR drivers...? they shouldn't, if they get income, that income should be taxed like everyone else However, I suspect, they could establish themselves as a small business - then i'm sure they could write off a lot more than they take in - so in those terms, that article is a bit one sided While I am sure that you just omitted the tag, I know of a skydiver who declares himself as a small business just so he can deduct his camera equipment and skydiving expenses. He doesn't actually charge anything for photos.... The only sure way to survive a canopy collision is not to have one. Quote Share this post Link to post Share on other sites
kelpdiver 2 #6 August 1, 2012 Quote However, I suspect, they could establish themselves as a small business - then i'm sure they could write off a lot more than they take in - so in those terms, that article is a bit one sided the problem with this approach is that the IRS expects that small business to start making money. You can't run a small business at a loss for writeoff purposes for very long, which is a bit annoying for those hobbyists (divemaster, for example) who might make a few hundred bucks against costs for a few hundred more, doesn't think it's fair to pay marginal tax rate on that "income." Quote Share this post Link to post Share on other sites
kallend 2,150 #7 August 1, 2012 QuoteQuote However, I suspect, they could establish themselves as a small business - then i'm sure they could write off a lot more than they take in - so in those terms, that article is a bit one sided the problem with this approach is that the IRS expects that small business to start making money. You can't run a small business at a loss for writeoff purposes for very long, which is a bit annoying for those hobbyists (divemaster, for example) who might make a few hundred bucks against costs for a few hundred more, doesn't think it's fair to pay marginal tax rate on that "income." People do it anyway.... The only sure way to survive a canopy collision is not to have one. Quote Share this post Link to post Share on other sites
rehmwa 2 #8 August 1, 2012 QuoteQuote However, I suspect, they could establish themselves as a small business - then i'm sure they could write off a lot more than they take in - so in those terms, that article is a bit one sided the problem with this approach is that the IRS expects that small business to start making money. You can't run a small business at a loss for writeoff purposes for very long, which is a bit annoying for those hobbyists (divemaster, for example) who might make a few hundred bucks against costs for a few hundred more, doesn't think it's fair to pay marginal tax rate on that "income." sure, fine.... so to the original topic - I run 500 meters, and someone gives me $25000 and a lump of gold worth another $50 You go to the casino and win a little over $25000 Kallend sells an invention for $25050 Ok - why should I not pay taxes on my income but you two have to - just because I ran for it? ... Driving is a one dimensional activity - a monkey can do it - being proud of your driving abilities is like being proud of being able to put on pants Quote Share this post Link to post Share on other sites
kelpdiver 2 #9 August 1, 2012 Quote Ok - why should I not pay taxes on my income but you two have to - just because I ran for it? the difference would be that you spent 50k on coaching and another 30k on housing this year in your full time job as a 400m (there is no 500m in track) racer. If you lost 40k at the casino (and can document it) before winning the 25k, you would also not pay. The inventor probably has development costs as well...hopefully Kallend was able to get a good price and come out ahead, and yes, get to pay taxes on it. Quote Share this post Link to post Share on other sites
Southern_Man 0 #10 August 1, 2012 QuoteQuote Ok - why should I not pay taxes on my income but you two have to - just because I ran for it? the difference would be that you spent 50k on coaching and another 30k on housing this year in your full time job as a 400m (there is no 500m in track) racer. Right, in which case the athlete (by organizing an S-corporation) could write off his coaching expenses. Not sure about housing (probably not, but I'm sure some accountant out there somewhere is willing to try it. In other words, the original article was both intellectually lazy and dishonest in merely asserting that all the winnings are going to be taxed at the 35% marginal rate."What if there were no hypothetical questions?" Quote Share this post Link to post Share on other sites
