This is a first in my profession. Clients 4 yr old participated in talent contest in 2012 but did not earn any income yet parents had related expenses.
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Talent contest
It probably is not any different than a parent spending money on sports equipment or a sports competion - it is a cost of raising a child. -
If and when the child wins any awards or prizes and has to report the income, then certain expenses can be deducted to arrive at zero. No loss.Comment
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No carryover of exp. Each "talent contest" would have its own expenses attributable to it, I would think.Comment
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Did you ever watch any of those shows on TLC?? Those people go to a LOT of expense to put their kids in talent contests and beauty contests and the kids are really young!!!
I watched one or 2 of them. It was sad to watch what they do to their children.
To them it is a business...not a hobby. But then they aren't the IRS
Linda, EAComment
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Talent contest in my office
My client's 4 yr old won them a PITA Differential on their tax prep fee this year... running all over my house, going upstairs and bouncing a ball down the stairs, hitting my front door, over and over and over, trashing my powder room with an entire container of liquid soap....
How does that grab ya for talent?
"I am proud to pay taxes in the United States. The only thing is I could be just as proud for half the money." Arthur GodfreyComment
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You mean your EX-client, right?!Comment
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Not at all!
She paid a PREMIUM!
"I am proud to pay taxes in the United States. The only thing is I could be just as proud for half the money." Arthur GodfreyComment
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OK then, and sent her cleaning lady over to your house, I hope!Comment
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