No pity here. It’s a business. Use Schedule C ... they took 4 years training - no reason they can’t spread the winnings across the four years earnings (if much).
“Use Schedule C .”
Yup. expenses are deductible and from what i read about Phelps, he chows down on 5 pizzas every afternoon during training to burn calories. If only he kept those receipts..
That's a great point. They should be able to write off every expense associated with their training over the past 4 years. I'd argue that, with the exception of their primary residence, just about every dollar spent could be attributable to their training. Food, communications, coaches, gym time, pool time, transportation, hotel accommodations, etc. They may not be able to deduct certain entertainment expenses like booze, pot and Disney movies. But otherwise, I bet the government owes them money if they play the game right. They need to spend the money on a good tax attorney, which will also be tax deductible. LOL!
I agree. Money earned is taxable. Even if you are a US citizen and you live and work overseas, you must pay US taxes. I knew American civilians who worked in Germany when I was in the Army. They had to pay taxes on their earnings.
4 years training????? LOL! You're clueless louis, you have no idea of what you're talking about!
Try a lifetime of training since they first took up the sport at what, 5, 7, 8, 10 years of age?
Then add to that the cost of coaches, travel and hotel expenses for meets over all those years before they even made the Olympic team.
And where is your "Schedule C" for those who didn't medal but yet put out hundreds of thousands of dollars in expenses for the above that never made gold?
I pay 43% on short term Cap gains...to the Feds and to the state.
Although I can give gifts of $14k to people..that cannot be taxed...
But these gold medals are not gifts.....
BTW...the short term gains tax...is total confiscatory..as they risk nothing..fwiw