Semi-OT: BB Can Deduct His $500k Fine (merged)

[BrianPat]

Looks like Bill CAN deduct the $500,000

There is a legit deduction he can use.

http://blogs.wsj.com/law/2007/09/17/tax-profs-bill-belichick-can-deduct-his-500000-fine/

 

[TruthSeeker]

Re: Looks like Bill CAN deduct the $500,000

There is a legit deduction he can use.

http://blogs.wsj.com/law/2007/09/17/tax-profs-bill-belichick-can-deduct-his-500000-fine/

Sports fines have always been deductible.

 

[Patriot_in_NY]

Re: Looks like Bill CAN deduct the $500,000

:singing: :singing: :singing:

Wrote Myron Grauer of Capital University Law School: “Because, unfortunately, in this day and age, it probably is ‘ordinary’ for coaches and players in professional sports to cheat and, if caught, to be fined by the league, the fine levied on the Patriots’ coach can be viewed as an ordinary and necessary business expense….”

I love that line......... screw the deduction.

"Mr. Kraft, I'll be submitting some receipts for reimbursement after incuring a few recent...... ummmmmm..... ordinary and necessary business expenses. Hey, it is what it is.... ”

 

[PatsFanSince74]

Re: Looks like Bill CAN deduct the $500,000

Ah, free market capitalism with an ever less progressive tax code...don't ya love it

 

[godef]

Re: Looks like Bill CAN deduct the $500,000

Does he pay the fine with money he was already paid? Or is this deducted from his check. If the latter, this is already a built-in deduction... can't get taxed on money you were never paid.

Then again, I'm no tax expert...

 

[PromisedLand]

Re: Looks like Bill CAN deduct the $500,000

I always assumed it was equivalent to docking of pay - and you don't pay taxes on what you don't get paid. But I am no more of a tax expert than Godef...

 

[patchick]

Re: Looks like Bill CAN deduct the $500,000

I always assumed it was equivalent to docking of pay - and you don't pay taxes on what you don't get paid.

Agreed, no way should you pay taxes on money you never pocket! There are tons of allowances for this in the tax code. For instance, IIRC gambling losses offset gambling gains, so if you win $100 at a slot machine after spending your afternoon sticking in $200 in quarters, you don't owe income taxes on the $100 "winnings." (But you should find a better way to spend your afternoons.)

 

[CheerforTom]

http://blogs.wsj.com/law/2007/09/17/tax-profs-bill-belichick-can-deduct-his-500000-fine/

Come on, how awesome is that? :rocker:

An excerpt also adds to a discussion I recall having yesterday:

“[T]he fine was for violating a rule, not for cheating. The Patriots were not accused of cheating by the Commissioner and were not fined for cheating….No professional football game is played without someone breaking the rules. It is expected that people will break the rules,” McIntyre wrote.

I never thought I'd have a bunch of tax nerds backing me up.

 

[Truck]

Re: Semi-OT: BB Can Deduct His $500k Fine

I assume all fines arent really fines, but rather a reduction in wages, hence you pay less taxes since you earned less

 

[ChoWZa]

Re: Semi-OT: BB Can Deduct His $500k Fine

http://blogs.wsj.com/law/2007/09/17/tax-profs-bill-belichick-can-deduct-his-500000-fine/

Come on, how awesome is that? :rocker:

An excerpt also adds to a discussion I recall having yesterday:


I never thought I'd have a bunch of tax nerds backing me up.

haha guess we're down to 250k and a 1st rounder =p

 

[patchick]

Re: Semi-OT: BB Can Deduct His $500k Fine

haha guess we're down to 250k and a 1st rounder =p

so maybe if they deduct the 1st rounder it will net out to a 2nd?