Tax question

[1100011CS]

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?

 

[GoCubsGo]

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?

 

[TykeClone]

Maybe in Canada :wink: 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

 

[1100011CS]

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

 

[1100011CS]

Maybe in Canada :wink: 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

 

[IsUaClone2]

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).

 

[TykeClone]

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 :wink:

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.

 

[intrepid27]

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.

 

[1100011CS]

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?

 

[Clark]

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.

 

[BooneCy]

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.