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    #1

    Celebrity Deductions

    In a couple days I have an appointment with a former athlete. Reasonably well-known.

    Did not perform in 2015. However made a substantial amount of money selling autographs. Has 1099s from various agencies, etc. through which the money was funneled.

    For purposes of discussion, let's assume the money from autographs is $80,000, after commissions withheld from the agencies.

    What kind of deductions are available for this situation? There are no direct costs associated with the revenue, other than just being himself, so I'm wondering if ANYTHING can be deducted.

    I've got some ideas, as there was quite a bit of travel, but none of it directly associated with the signatures. Also, if the money was coming through agencies, there had to be some sort of expectation of service involved but at this point I don't know what.

    Any other ideas?
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    #2
    I don't know, just throwing out ideas, any mileage maybe? Also, if he had to maintain a certain body image, wouldn't things associated with that be deductible on a C? I'm sure no one would want his autograph if he was now fat and out of shape. Maybe certain travel to keep up an image?

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      #3
      Originally posted by Super Mom View Post
      Also, if he had to maintain a certain body image, wouldn't things associated with that be deductible on a C? I'm sure no one would want his autograph if he was now fat and out of shape.
      Yeah, maybe if he got gigantic breast implants like Chesty Love, otherwise no.

      Seems like the only ordinary and necessary expense of creating autographs would be pens. It also seems like gross receipts should be reported, and the agency commissions should be deducted as commissions. Is the agency the only way that he gets business in the door?

      As soon as you bring in "travel", if it's out of state and part of his business, then he's got source income from multiple states, right?
      "You said it, they'll never know the difference. Come on, we'll paint our way out!" - Moe Howard

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        #4
        Similar

        Originally posted by Super Mom View Post
        I don't know, just throwing out ideas, any mileage maybe? Also, if he had to maintain a certain body image, wouldn't things associated with that be deductible on a C? I'm sure no one would want his autograph if he was now fat and out of shape. Maybe certain travel to keep up an image?
        Your comments are similar to the "MUSICAN" post this week.

        Would Tax Professionals be able to take a deduction for that certain image you mentioned. If not, why not?
        Always cite your source for support to defend your opinion

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