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Thread: Tax question

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    Tax question

    Obviously I'll be asking my tax preparer about this too but I don't meet with her until next week and I can't wait.

    My brother-in-law claims that you can (and he does) write off equipment, fees, travelling expenses, etc... for athletic activities that your kids participate in. He told my wife this and I told her he's FOS. What say you?



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    Re: Tax question

    Quote Originally Posted by 1100011CS View Post
    Obviously I'll be asking my tax preparer about this too but I don't meet with her until next week and I can't wait.

    My brother-in-law claims that you can (and he does) write off equipment, fees, travelling expenses, etc... for athletic activities that your kids participate in. He told my wife this and I told her he's FOS. What say you?

    He's going to be in a world of hurt if he ever gets audited. Is he trying to claim that his kid is going to be a professional athlete, and therefore those are business expenses?



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    Re: Tax question

    Maybe in Canada Canada's New Government Establishes Program Eligibility for the Children's Fitness Tax Credit

    In Iowa, you can in some cases.

    Iowa Department of Revenue 1040 Instructions 2010

    Taxpayers who have one or more dependents attending Kindergarten through 12th grade in an accredited Iowa school may take a credit for each dependent for amounts paid for tuition and textbooks. Dependents must have attended a school in Iowa that is accredited under section 256.11, not operated for a profit, and adheres to the provisions of the U.S. Civil Rights Act of 1964.
    Some eligible things...
    Shoes

    Football, soccer, and golf shoes; cleats for football shoes; track spike shoes
    Travel

    Non-travel fees for field trips if the trip is during school hours
    Tuition

    The school must be accredited. Amounts paid are not allowed if they relate to teaching of religious tenets or doctrines of worship.
    Uniforms

    Band, hockey, and football uniforms
    Some ineligible things
    Clothing

    Clothes which can be used for street wear, such as T-shirts for extracurricular events such as track and science; clothing for a play or concert that is suitable for everyday wear; prom dresses and tuxedos
    Dues, fees, and admissions

    Sports-related socials; special education programs like career conferences; special testing like SAT, PSAT, and Iowa talent search tests
    Music

    Purchase of musical instruments; music lessons outside of school; sheet music for private use
    Religion

    Amounts paid are not allowed if they relate to teaching of religious tenets or doctrines of worship.
    Shoes

    Basketball shoes and other shoes suitable for everyday wear
    Shop class and mechanics class

    Optional expenditures for wood or materials or for repair of personal vehicles
    Travel

    Travel expenses for trips


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    Re: Tax question

    Quote Originally Posted by GoCubsGo View Post
    He's going to be in a world of hurt if he ever gets audited. Is he trying to claim that his kid is going to be a professional athlete, and therefore those are business expenses?
    His kids are 9 and 7



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    Re: Tax question

    Quote Originally Posted by TykeClone View Post
    Maybe in Canada Canada's New Government Establishes Program Eligibility for the Children's Fitness Tax Credit

    In Iowa, you can in some cases.

    Iowa Department of Revenue 1040 Instructions 2010



    Some eligible things...


    Some ineligible things
    You're telling me that I can deduct football, soccer, and baseball shoes? That's half the expenses right there.

    Wait, are sports outside of school considered "extracurricular activities"? We're talking Little League baseball, peewee soccer, etc... Not school sponsored activities.

    Textbooks defined
    “Textbooks” means books and other instructional materials used in teaching those same subjects. This includes fees, books, and materials for extracurricular activities.

    Examples of extracurricular activities
    Sporting events, speech activities, musical or dramatic events, driver's education (if paid to the K-12 school), awards banquets, homecoming, prom (clothing does not qualify), and other school-related social events



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    Re: Tax question

    No way.

    The only way that I could spin this is if your brother-in-law had a league in which he provided the equipment and he combined that with a revenue model (either entry fees or ticket sales) that could be expected to off-set the expenses (at least sometime in the future).


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    Re: Tax question

    Quote Originally Posted by 1100011CS View Post
    You're telling me that I can deduct football, soccer, and baseball shoes? That's half the expenses right there.

    Wait, are sports outside of school considered "extracurricular activities"? We're talking Little League baseball, peewee soccer, etc... Not school sponsored activities.
    Ask your tax preparer that

    Examples of extracurricular activities

    Sporting events, speech activities, musical or dramatic events, driver's education (if paid to the K-12 school), awards banquets, homecoming, prom (clothing does not qualify), and other school-related social events
    If it's not school sponsored, you might have a harder time justifying it.


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    Re: Tax question

    When my kids were in school our tax guy did this. He said baseball and football spikes as well as wrestling shoes, singlets, etc are no problem. Basketball shoes are a bit dicey as they can be worn as street shoes as well.



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    Re: Tax question

    Quote Originally Posted by intrepid27 View Post
    When my kids were in school our tax guy did this. He said baseball and football spikes as well as wrestling shoes, singlets, etc are no problem. Basketball shoes are a bit dicey as they can be worn as street shoes as well.
    Were these "school sponsored" athletics?



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    Re: Tax question

    Quote Originally Posted by 1100011CS View Post
    You're telling me that I can deduct football, soccer, and baseball shoes? That's half the expenses right there.

    Wait, are sports outside of school considered "extracurricular activities"? We're talking Little League baseball, peewee soccer, etc... Not school sponsored activities.
    It's not a deduction, it's a credit for up to $250 per child (technically it's 25% of the first 1,000 in qualified expenses)

    And yeah, I would assume it would have to be a school sponsered athletic activity for the cleats to qualify but I don't know that for sure.



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    Re: Tax question

    Quote Originally Posted by Clark View Post
    It's not a deduction, it's a credit for up to $250 per child (technically it's 25% of the first 1,000 in qualified expenses)

    And yeah, I would assume it would have to be a school sponsored athletic activity for the cleats to qualify but I don't know that for sure.
    This. It needs to be school sponsored and it is not a deduction, you are qualifying for the credit.



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