Just when I was planning on publishing my post on foreign free lance income and tax consequences- the big news headline of 2017 dropped! Today special prosecutor, Robert Mueller brought charges against Manafort & Gates for money laundering and foreign bank accounts among any other things. While those fireworks continue and you think that you may not be in the same league as them, let me assure you that many U.S. citizens who live abroad and have freelance income do not understand its tax implications.
Much has recently been said of the tax breaks received by the National Football League. While they do receive certain tax breaks, many of these breaks are also available to other businesses. Granted, they do tend to be on a larger scale.
There is however, one area in which sports franchises do get significant tax breaks. Below are three aspects to tax breaks received by the NFL and other professional sports:
- Tax-exempt status of the league office
- Amortization of the purchase price of the franchise
- State and local financing of sports stadiums.
The United States Tax Court recently made a ruling that drew some fine lines about what constitutes a de minimis fringe benefit for employees. The IRS had sued the Boston Bruins Hockey Team, contending that meals served to players and others while attending away games was subject to the 50 percent limitation on the cost of meals provided to employees. It should be noted that this is a working-condition benefit and not taxable to the employees. The Bruins countered the IRS, stating that these meals met the qualifications of a de minimis benefit and were therefore fully deductible. The Tax Court sided with the Bruins, stating that the benefit was fully deductible. Read More