AMP Expert Solutions provides professional athlete financial management services tailored to fit the unique needs of the professional athlete for today and tomorrow. We offer accounting and tax services for professional athletes to address issues unique to professional athletes.
Below are seven major areas that impact professional athletes:
1. “Jock Tax” and Residency: Athletes must report their income in each state in which they play. This is known as the “Jock Tax.” It is important to understand the impact of the decision on where to establish and maintain residency during their playing career.
2. Charitable Giving Strategies: Players can take advantage of their status to help others through charitable giving to support a cause close to their heart. We can help by explaining the value of charitable giving throughout the career and life of a professional athlete and assist with the formation of foundation and other charitable vehicles to minimize taxes while maximizing community impact.
3. Agent Fees & Unions Dues: As of the tax year 2018, union dues and agency fees directly related to the generation of income are no longer itemized deductions.
4. Meals and Travel Expenses: According to tax law, a tax payer who travels for business purposes can deduct “ordinary and necessary” travel expenses including meals, tips, local travel (such as taxi fare, rental cars, and other modes of transportation), as well as other miscellaneous expenses.
5. Player Fines: When a player incurs fines, often they are donated to a charity in the name of the player, turning the fine into a tax deductible expense to the player. Fines not donated to a charity may be considered a necessary and ordinary business expense to the player and can be deducted from taxable income, subject to new and limiting tax rules.
6. Bonuses and Royalties: Tax planning for bonuses can be challenging. Royalty deals and bonuses are based on player performance and an unexpected fluctuation can really change the outcome of the player’s tax situation.
7. Taxable Gifts: Gifts to players are usually given in connection with an appearance. Unfortunately, the IRS considers these gifts and swag as taxable income. We offer
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