Author Topic: 2018 Tax Reform and Football tax reporting  (Read 1494 times)

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Offline Dakota Dan

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2018 Tax Reform and Football tax reporting
« on: February 06, 2019, 01:52:29 PM »
Has any CPA referees looked at the new 2018 Tax Reform Changes for Self-Employment (schedule C) and care to give us an overview in what we still can do and what we can not do with our referee income taxs in comparison to what we have done in the past?  Any Help would be appreciated...

Offline carol1995

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Re: 2018 Tax Reform and Football tax reporting
« Reply #1 on: February 06, 2019, 03:37:09 PM »
Has any CPA referees looked at the new 2018 Tax Reform Changes for Self-Employment (schedule C) and care to give us an overview in what we still can do and what we can not do with our referee income taxs in comparison to what we have done in the past?  Any Help would be appreciated...

I'm not a CPA, don't pretend to be, and didn't stay at a Holiday Inn last night, but I did a quick search and found the following article:

https://turbotax.intuit.com/tax-tips/self-employment-taxes/tax-reform-changes-for-self-employed-businesses/L4OoLLhqR


Offline riffraft

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Re: 2018 Tax Reform and Football tax reporting
« Reply #2 on: February 06, 2019, 04:52:22 PM »
I am trying to get clarification from the IRS as to whether a "sports official" would be consider a "specified" service business for the QBI deduction (an athlete is under this category). It probably won't matter to most because it is phased out at a very high income level, but could come into question on some people's returns.

I am comfortable still deducting 50% of my meal expense for after game debriefing with the crew.

Those are probably the two potential changes that would come into play, other than than the lower tax rates.

Offline TxSkyBolt

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2018 Tax Reform and Football tax reporting
« Reply #3 on: February 07, 2019, 08:34:04 PM »
Not the way I read it. Number one it applies to businesses. I dont believe officiating is considered a business. Its designed for businesses who employ people in order to stimulate the economy.

This article has more clarification

https://www.kitces.com/blog/sstb-specified-service-business-de-minimis-rule-crack-and-pack-80-50-rule-qbi-deduction/


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Offline HLinNC

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Re: 2018 Tax Reform and Football tax reporting
« Reply #4 on: February 08, 2019, 06:04:10 AM »
I think my family finally has all the necessary documents to file now.  Had to wait on my son's university to send us his tuition statement.  We'll see how it goes.  I have to claim two businesses as I also work as an IC for a local radio station calling PxP for HS basketball.

Offline scrounge

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Re: 2018 Tax Reform and Football tax reporting
« Reply #5 on: February 08, 2019, 06:58:28 AM »
Not the way I read it. Number one it applies to businesses. I dont believe officiating is considered a business. Its designed for businesses who employ people in order to stimulate the economy.

This article has more clarification

https://www.kitces.com/blog/sstb-specified-service-business-de-minimis-rule-crack-and-pack-80-50-rule-qbi-deduction/


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If you're filing a Schedule C and don't fall under any of the traps would cause your officiating to be reclassified as a hobby, it's absolutely considered a business. And unless you're making 6 figures from your officiating, you shouldn't have to worry much about the QBI limitations described in the article. I got a QBI credit, albeit a small one. Which was nice, since the overall bill went up a bit....but that's a different story :(

Offline riffraft

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Re: 2018 Tax Reform and Football tax reporting
« Reply #6 on: February 08, 2019, 10:00:13 AM »
If you're filing a Schedule C and don't fall under any of the traps would cause your officiating to be reclassified as a hobby, it's absolutely considered a business. And unless you're making 6 figures from your officiating, you shouldn't have to worry much about the QBI limitations described in the article. I got a QBI credit, albeit a small one. Which was nice, since the overall bill went up a bit....but that's a different story :(

Actually the limitation is not based on your business income for a SSTB but on your AGI. So if you are married and your AGI exceeds $315,000 than the QBI will be phased out.

Offline theunofficialofficial

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Re: 2018 Tax Reform and Football tax reporting
« Reply #7 on: February 11, 2019, 02:50:16 PM »
There was recently an excellent Podcast on Rule11Officials that covered doing taxes as an Official.

http://rule11officials.com/conversation-34-sports-officials-tax-guide-co-author-keith-vincent-cpa/

Highly recommend listening.

Offline bbeagle

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Re: 2018 Tax Reform and Football tax reporting
« Reply #8 on: June 04, 2019, 12:55:40 PM »
If you're filing a Schedule C and don't fall under any of the traps would cause your officiating to be reclassified as a hobby, it's absolutely considered a business. And unless you're making 6 figures from your officiating, you shouldn't have to worry much about the QBI limitations described in the article. I got a QBI credit, albeit a small one. Which was nice, since the overall bill went up a bit....but that's a different story :(

I hope you're not audited.

Donald Trump and the Republicans changed the laws starting in Tax Year 2018. Only businesses that hire employees and are not using their own 'special skills' (i.e. Football players, artists, hollywood stars) can take the QBI deduction. Referees fit into the 'special skills'.

My brother is works as an independent contractor behind the cameras for NFL, NHL, NBA games. He can't take the QBI deduction. It cost him a LOT of money this year.
« Last Edit: June 04, 2019, 12:57:13 PM by bbeagle »

Offline scrounge

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Re: 2018 Tax Reform and Football tax reporting
« Reply #9 on: June 05, 2019, 07:04:33 AM »
I hope you're not audited.

Donald Trump and the Republicans changed the laws starting in Tax Year 2018. Only businesses that hire employees and are not using their own 'special skills' (i.e. Football players, artists, hollywood stars) can take the QBI deduction. Referees fit into the 'special skills'.

My brother is works as an independent contractor behind the cameras for NFL, NHL, NBA games. He can't take the QBI deduction. It cost him a LOT of money this year.

I don't know where you're getting the requirement that a qualified business must have employees to qualify for the QBI, it quite clearly specifies that it applies to sole proprietorships. And the "special skills" you mention, actually called Specified Service Trades & Businesses, isn't an eligibility question but rather an income limitation. They still qualify for the QBI deduction, but it's phased out beginning at $315k of total taxable income for married filing jointly and completely gone by $415k. Needless to say, my income from officiating and other sources did not exceed $315k (or $157.5k for those not filing MFJ). Therefore, the SSTB limitation doesn't impact my QBI eligibility.

No idea about your brother's situation and none of my business, but if he's over the income limits and had his QBI limited, then congratulations on doing so well. If not, he may need to investigate better tax advice.

Offline riffraft

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Re: 2018 Tax Reform and Football tax reporting
« Reply #10 on: June 06, 2019, 07:57:45 PM »
I hope you're not audited.

Donald Trump and the Republicans changed the laws starting in Tax Year 2018. Only businesses that hire employees and are not using their own 'special skills' (i.e. Football players, artists, hollywood stars) can take the QBI deduction. Referees fit into the 'special skills'.

My brother is works as an independent contractor behind the cameras for NFL, NHL, NBA games. He can't take the QBI deduction. It cost him a LOT of money this year.

I certainly wouldn't speak to your brother's situation, but as a CPA, I have no problem taking the QBI deduction for my officiating. As long as you are below the income threshold for the limitations there is no issue taking it for officiating income.