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Tip for Pro Athletes: Getting Fined May Have Tax Advantages

[caption id="attachment_8735" align="alignright" width="260" caption="Chad, sans sombrero"][/caption]

Misbehaving athletes (or fun hating NFL, NBA, MLB administrators) should take note, getting fined can apparently do wonders for your itemized deductions.

That’s according to a report from Darren Rovell at CNBC, anyway. He cites sports accountant Robert Raiola of Van Duyne, Behrens & Co. who says that fines are “classified as ordinary business expenses,” so once the amount of those expenses exceed 2% of the taxpayers adjusted gross income, the expenses are deductible.


Of course, what isn’t mentioned is that it’s likely that a professional athlete’s itemized deductions would probably be limited since it’s safe to assume that their itemized deductions are greater than $166,800. So in other words, it might work out well for Chad Ochocinco to get fined on a weekly basis for wearing sombreros, bribing officials, and/or any other tomfoolery that the NFL finds fineable but without all the information it’s difficult to determine if this is actually a worth tax-planning strategy. Athletes – please consult your tax advisor that is probably already robbing you blind.

Need A Tax Deduction? Get Fined For Something [CNBC via Tax Policy Blog]

Is the Shortage of Good Accountants in the Sex Industry an Opportunity?

Okay my friends, this is a serious problem in our country that needs addressed. The vast shortage of competent, professional, tax advisors and accountants for escort service businesses, brothels, and your run-of-the-mill houses of ill repute can go on no longer. If not for the business opportunity, then for the good of your fellow Americans and maybe your state’s dire fiscal situation.


Today we learned that the one of the proprietors of Companions, “a call-out escort service” in Salt Lake City that was convicted of one count of tax evasion. Jodi Hoskins and her husband Roy were both convicted of dodging taxes (he in May 2009) for the year 2002. They managed to underreport their gross receipts by $1,204,354 which resulted in evaded taxes of $485k-ish. As you can tell, this is a bit of a problem. And with all challenges/problems/giant pains in the ass, therein lies an opportunity.

Our position is that these businesses simply cannot go on without more accountants and tax professionals stepping up to help these pillars of the business community run their whorehouses better. This means you, GC readers. Your knowledge of the double-entry accounting, inventory, derivatives, and payroll will be invaluable for these entrepreneurs and their employees.

Plus! If more of these businesses are in compliance with state and federal taxes, that’s one more step to states becoming fiscally solvent AND Tim Geithner can give the cash printing machine break. Everyone wins!

Escort Service Operator Convicted of Tax Evasion [Web CPA]
Companions Website [Warning: NSFW]

Donald Trump Once Proposed a One-Time 14.25% Net Worth Tax

Back in 1999, when the The Donald was also faux-considering a Presidential run, he proposed a one-time 14.25% net worth tax on anyone with a net worth of $10 million that would solve all our national debt problems in a blink of an eye.

According to an article published by CNN in November of ’99, DT crunched the numbers himself and “his proposed 14.25 percent levy on such net worth would raise 5.7 trillion and wipe out the debt in one full swoop.” Of course this was all before the SCOTUS determined the outcome of an election, 9/11, Afghanistan, Iraq, George W. Bush somehow winning re-election, Barack Obama being elected President, The Tea Party, Libya and several seasons of The Apprentice. And seeing how Mr. Trump’s politics change like his hair caught in a a gusty wind, it’d be surprising if he still felt strongly about this particular policy. [CNN via TaxProf]