Athletes have certain privileges when it comes to tax payments, as they can hope for different deductions if they understand the taxation laws. There are some specific categories where tax deductions apply and many athletes are not even aware of them. Athletes’ tax filing can be very demanding and complex, and they also rather hire a company or tax advisor to deal with their reports.
What is deductible?
- Travel expenses and meals, as well as costs of rental car, taxi, etc. all qualify for tax deduction if it refers to a business trip.
- When it comes to temporary housing, professional athletes can count on tax deduction if meeting certain conditions. This usually includes living in a place less than a year and it refers to amateur league players most of the time.
- Equipment purchased by an athlete for competition purposes is also subject to tax deduction, as well as training expenses of the athlete. Alike, salaries he pays to his manager or agent can also account for tax deductions, as well as fees paid to the union.
- Charity is usually subject to tax deduction, and for professional athletes, the same rule applies. Charity donations and money given to social causes qualify for deduction in general.