ATTENTION ATHLETES, the IRS created business deductions to provide tax relief to individuals (and businesses) by allowing them to deduct certain expenses from their taxable income. You’re not dogging the tax man, the IRS wants you to use the deductions.
Travel expenses, equipment and supplies, marketing, training, are things that might qualify as business expenses therefore could be deductible.
By the way, a business expenses is an expense that an individual or company can use to subtract from their taxable income to lower their tax bill.
Things you might be able to deduct:
Travel Expenses- travel to and from NIL events, appearances, etc. However, the athlete should be paying for the expenses.
Marketing Fees – fees associated with marketing the athlete. Social media fees, promotional materials, website domain fees, advertising, etc.
Legal and professional fees – the fees associated with an agent, attorney, accountant. Fees for contract review, legal advice, tax or accounting services.
Equipment and gear – buying equipment associated with the athlete’s sport or any equipment needed for content creation. (e.g., basketball, bat, cleats, camera, microphone). If the university is providing the equipment or gear you’re not taking the deduction. It has to be something the athlete paid for.
There are other rules associated with this deduction. But these are the types of deductions that are available. You have education, insurance, training and retirement related deductions and credits. In order to really maximize these benefits athletes need competent record keeping.
Consult with a tax advisor, CPA, or an attorney on these matters.
