If You Win A Medal At The Olympics The Tax Authorities Will Be After You
2016 Aug 17, 2:22am 1,055 views 12 comments
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RWSGFY
2016 Aug 17, 11:57am
We tax productive activities like, you know, working. So why not tax unproductive activities too?
HydroCabron
2016 Aug 17, 12:03pm
Good: income should be taxed. I see no problem here.
I also see no problem deducting training and other expenses, which should be substantial. If not, for most Olympians it's 15%, which is no big shit. The rest of us work for rewards, too, and must pay taxes. Why should we exempt particular activities from this?
This is a story only for those below 85 IQ.
An athlete can train for his or her entire life for an opportunity to compete in the Olympic Games
All sorts of people work their entire lives to fulfill their non-Olympic dreams. They're taxed.
Dan8267
2016 Aug 17, 12:29pm
Good: income should be taxed. I see no problem here.
Productive income should not be taxed. Private use of public resources like land and the EM spectrum should be taxed. This would encourage productivity and discourage wasteful use of resources.
ja
2016 Aug 17, 12:43pm
Should we deduct the opportunity cost of lost income?
i.e. if I leave a 50k/year job to just train for the olympics for 6 months, I should be able to deduct 25k
Anyone have a list of corporations,that don't care about America,only the bottom line, that don't pay any taxes
& get a tax credit?
Hope anyone that has ever owned stock in these Me,Me,Me corporations live long,slow,painful lives.
junkmail
2016 Aug 17, 2:32pm
Good: income should be taxed. I see no problem here.
A very capitalist view.
Would you consider then an advertising charge from the athlete to the US Treasury to allow the national flag to fly behind the athlete? Say... for 36% of the winnings?
Are all medalists taxed the same amount by their 'home' nations?
If not.. are we taxed more than most?
Considering this is an AMATEUR event how can a non-winning athlete deduct training and expenses?
In your view should inheritance not be taxed then, because it's not 'income'?
Who defines income?
Do we ever get to vote on what fringe elements are considered income and which ones are left out?
Is it remotely possible that an athlete training and representing his/her nation might be a fringe element of the 'income status'.
Do you know what a grey area is?
Do you think the athlete should have to pay a 'gift tax' for the gold content inside the medal?
Should the IRS view the olympic uniform, training garb, and olympic apparel as gifts to the athlete, also to be considered at tax time?
When companies print and produce USA olympic merchandise... should a portion of the proceeds go to the athletes who made it popular?
And if it doesn't... have you made a big stink about it. If not... why?
If we sat you in a room with an IRS expert and both of you went down the list of what YOU thought income is/was and what they CONSIDER income is/was. Would you agree on all points?
Am I taking you too seriously?
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What i find interesting is those companies who use the 'offshore' loophole to avoid taxation, but have no problem using the US legal system to protect their copyright, patents, bankruptcy, restructuring, roads for delivery, customs for safety, mail services for delivery, etc...
So a serious double standard there. Corporations can avoid tax by moving overseas. But a serious AMATEUR athlete, performing FOR their nation (overseas), yes those we SHOULD tax.
Then try this one. Move overseas as a US citizen, while keeping your citizenship and see just how bad the IRS works you over. Quite alarming. The IRS loves to double tax it's citizens. The IRS is the WORST tax revenue organization in the world. Those outside know it better than those inside.
Hydro's answer..
Good: income should be taxed. I see no problem here.
Hydro... you have a dead soul man. A dead soul.
turtledove
2016 Aug 17, 2:48pm
Considering this is an AMATEUR event how can a non-winning athlete deduct training and expenses?
I don't think that's true. My understanding is that sometime In 1971, they changed the rules to allow Olympic athletes to receive sponsorships from corporations; In 1978, they allowed professionals to re-establish themselves as "amateurs" for the purposes of qualifying for the Olympics; In 1986, they went whole hog and allowed pros to participate. The pre-1971 amateur requirement was considered unfair, as other countries supported their athletes, so they were able to train, while US Olympians had to work side jobs unless they came from wealthy families. That paved the way for corporate sponsorships... and the rest went from there.
HydroCabron
2016 Aug 17, 3:03pm
Your long list of questions, qualifications, pleas and theoreticals is precisely why our tax code is so complicated, and a burden to the great mass of middle-class filers.
"Let's tax this, but offer clawbacks for this; don't tax these two people here - tax the guy behind that tree over there. Add a check-box that tens of millions of filers have to decide whether to check because of qualified-stock/farm/non-farm/railroad-retiree income or reverse accelerated depreciation for blind veteran filers."
Hint: the tax code is already complex enough, and it handles this situation. Consider our noble medal-winning athlete.
A) No other income than the medal? Then the value ($9900) of a gold medal is only taxable as if it's worth $4350, thanks to the $4650 standard deduction. Since the bottom tax bracket is 10%, that's a whopping $435, or less than 5% of the value of the medal.
B) Income from a job, or a training stipend from the TeamUSA fund? Then, since plenty of equipment and other consumables is definitely deductible, I highly doubt the AGI will end up in a place where the marginal tax rate is more than 10% (and maybe even 0%). So tax could range from $0 to $990 if AGI is above $9,000 after all that. If AGI crosses into the higher brackets, then that payment is far less of a burden relative to their annual income.
By the way: they can use part of the prize money to pay the tax, same as most Americans pay income tax out of their earnings. Neat how that works, huh?
Since you love the IRS, and want to create more paperwork for Americans and more IRS employees, why don't you ask Obama how we can make the tax code more complicated.
What i find interesting is those companies who use the 'offshore' loophole to avoid taxation, but have no problem using the US legal system to protect their copyright, patents, bankruptcy, restructuring, roads for delivery, customs for safety, mail services for delivery, etc...
Then fix that!
"Because the government does this asshole thing (A) over here, we need to make it do another stupid thing (B) over there" is not an argument.
junkmail
2016 Aug 17, 3:45pm
I don't think that's true.
All your points are true. And I agree.
MY point was the athletes are not participating for a purse. (Tennis players)
Or a salary. (Professional basketball)
The end goal is for a trophy (just like your kids do.) No different.
In fact you made my point by saying that "...they allowed professionals to re-establish themselves as "amateurs" for the purposes of qualifying for the Olympics..."
So therefore it is regarded an amateur event.
Ok so we all agree.
Even the IRS agrees on tax exemptions in certain circumstances:
7.25.26 Amateur Sports Organizations
7.25.26.8 (04-08-1999)
Digest of Published Rulings
Training for Olympic and Pan American Games—An organization created essentially to provide advanced training to suitable candidates in the techniques of racing small sailboats in national and international competition to improve the caliber of candidates representing the United States in the Olympic and Pan American Games and other international racing events qualifies for exemption from federal income taxation under IRC 501(c)(3) as educational organizations. Rev. Rul. 64–275, 1964–2 C.B. 142.
My FedEx guy 4 years ago was training for some crazy event. He wasn't part of the 'dream-team' that switched status to play for the US Olympic Basketball team.
So my point is... My FedEx guy is a true amateur. FedEx helped sponsor him (for obvious reasons) but only for the olympics. If he wins a medal with 6K attached to the win does he owe tax on it? My contention... NO.
THEREFORE: Any gift accompanying the trophy shouldn't be taxed as income, because it is an amateur event.
Congress recognized this as unpatriotic:
"As the Sochi 2014 Winter Olympic Games begin, Rep. Blake Farenthold, R-Texas, reintroduced the Tax Exemptions for American Medalists, known as the TEAM Act, which exempts U.S. Olympic athletes from paying taxes on any medals and prizes they win."
"But the legislation never reached the president's desk. With only seven Senate cosponsors, it never even came up for a vote."
In addition to prize monies... (SO THIS IS DIFFERENT)
The U.S. Olympic Committee awards its athletes $25,000 for gold, $15,000 for silver and $10,000 for bronze. And it's all considered taxable income.
So this for me is a grey area. Perhaps this should be taxed, but I'm still doubtful.
My bug-a-boo is with a twat (earlier) who thinks the persons who need to be taxed most of all are amateur athletes competing ostensibly for their country. Under the heading...
"Good: income should be taxed. I see no problem here."
So HydroGoat has his/her keen eye on the front door of the fort, all the while millions and millions of under paid and non-paid taxes are flying out the back door. Typifying what's wrong with the country.
"Ooo shiny object" *distraction*
junkmail
2016 Aug 17, 4:25pm
Since you love the IRS
Really, I gave you the impression I love the IRS?
I took a stupid statement and ran it's course. All you saw was the result.
No.
YOU love the IRS.
You love it so much you're happy to have them tell you "income should be taxed." And like a sheeple you parrot to anyone who will listen.
This post is obviously a comment on "doesn't that seem unfair?"
You come along with the most asinine quote right off the top of an IRS document.
"...income should be taxed..."
How in your world view do you consider prize money for competing in an INTERNATIONAL amateur event "income"?
A) No other income than the medal? Then the value ($9900) of a gold medal is only taxable as if it's worth $4350, thanks to the $4650 standard deduction. Since the bottom tax bracket is 10%, that's a whopping $435, or less than 5% of the value of the medal.
OMG! Who loves the IRS now?
"Hey it's only $435, just paaay it aaalready!" "Sooo cheeep!"
Most likely getting up at 6am every morning to train, watching the diet, working out, managing injuries, buying equipment, etc.
THEN going to work to earn the income you so badly want them to pay tax on!
But WaterGoat types "All shall pay." Amazing feat considering the girth of your fingers. (clearly you don't exercise or you'd know the pain)
The IRS is wrong, they grant amateur clubs and organizations tax exemptions (see above). Do they not? But not the humans who win. Clubs/Companies yes... humans/people NO!
You're ok with that apparently.
You're wrong, it's not income. It's a prize. You may buy the shit the IRS is spewing, but I'm not. The fact you got that wrong from my first salvo is a little worrying.
BTW... Really hard to get anything changed when people like you run to the finish line of obvious all the time. "...income should be taxed..."
Slow down a bit, try think for yourself. On second thoughts... don't.
ja
2016 Aug 17, 5:09pm
Then try this one. Move overseas as a US citizen, while keeping your citizenship and see just how bad the IRS works you over. Quite alarming. The IRS loves to double tax it's citizens. The IRS is the WORST tax revenue organization in the world. Those outside know it better than those inside.
How would this work? Do you have an example?
How Much Are Olympians Taxed on Their Medals?
An athlete can train for his or her entire life for an opportunity to compete in the Olympic Games, but victory is never assured. The only guarantee? If you do win, the U.S. government is going to want a piece of the action.
In the eyes of the Internal Revenue Service, medal winners are no different from lotto prize recipients or someone who hits a jackpot in Vegas. The prize is considered income, and income gets taxed. But it’s not really the actual medal that has to be reported, it’s the money awarded by the United States Olympic Committee.
In recognition of representing the United States with a victory, the USOC gifts gold medalists with $25,000; $15,000 for silver; and $10,000 for bronze. According to CNBC, that’s the amount that gets earmarked for review by Uncle Sam, with the rate depending on the sum total of the athlete’s total income. For someone who makes out with endorsement deals and rings up a six- or seven-figure annual salary, the tax rate could be as high as 39.6 percent. For most athletes, the scale might fall closer to the 15 percent range for earnings collected abroad. For a gold medal, taxes could range from $3750 to $9900.
A good accountant can probably find a way to deduct training expenses, reducing an athlete’s net income. Senator Marco Rubio tried to pass a bill in 2012 exempting Olympians from the IRS celebrating with them, but it failed to gain any traction. A similar bill passed the Senate in July and will be circulating in the House of Representatives next month. If it passes, it would be retroactive—this year’s winners would be able to keep all of their money.
#taxthembitchez