ETax847 Posted March 5, 2017 Report Share Posted March 5, 2017 Client quit his job to pursue a career as a male figure skater. Hired coaches, and trains 12-16 hours per day. Was not profitable in year 1, but did earn some prize money, however had substantial expense. Can client deduct all of his expenses associated with this income. Expenses were huge in year 1. Quote Link to comment Share on other sites More sharing options...
jasdlm Posted March 5, 2017 Report Share Posted March 5, 2017 Sole proprietor and not smLLC? Quote Link to comment Share on other sites More sharing options...
ETax847 Posted March 5, 2017 Author Report Share Posted March 5, 2017 There really wasn't much in terms of start up costs. Should I list all ordinary and necessary expenses on sch c? Quote Link to comment Share on other sites More sharing options...
DANRVAN Posted March 5, 2017 Report Share Posted March 5, 2017 Depends on facts and circumstances. Trains 12 -16 hours a day? How much was his income vs. expenses? What source of funds did he live on? Quote Link to comment Share on other sites More sharing options...
ETax847 Posted March 5, 2017 Author Report Share Posted March 5, 2017 Income was roughly $3k, expenses for coaching, training and ice time etc are substantial. He is competing internationally and trying to make the usa olympic team. Sch C? Quote Link to comment Share on other sites More sharing options...
Lion EA Posted March 5, 2017 Report Share Posted March 5, 2017 Training for a new career is non-deductible. Training to keep up and improve his skills once he's a pro are business expenses. You'll have to do some questioning with your client over what the money was spent on, when, etc. Does he have sponsors? Quote Link to comment Share on other sites More sharing options...
ETax847 Posted March 5, 2017 Author Report Share Posted March 5, 2017 Thanks, given that income was earned, I am leaning toward considering it other income and offesetting expenses on sch A. thoughts? Quote Link to comment Share on other sites More sharing options...
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