Boxers and the IRS

[astro]

Successful boxers tend moreso than other athletes to have large traveling “posses” they support and this is a huge financial drain.

[dracoi]

@actualliberalnotoneofthose

True, but I think it is easier to expense things and pay OTHER employees (including friends/hangers-on, but certainly legit services as well) through the corp. There are also various benefits and expenses that can only be paid and deducted through corporate entity, though said benefits are not universally attractive or worthwhile.

We could find some types of expenses for which this is true, but it’s not really true for most things. Expenses are mostly deductible - or not - based on the same ordinary and necessary legal definitions and not based on the business entity type.

For example, I keep talking to people who believe that a corporate-owned car is now 100% tax-deductible. But personal use (based on mileage) must be reported as wages, so while the entire amount is an expense to the corporation, the personal use shows up on the individual’s tax return as taxable income. If we compare the corporate car deduction to the sole proprietor car deduction, the difference is more in form than in end result.

[cerebus]

@astro

Successful boxers tend moreso than other athletes to have large traveling “posses” they support and this is a huge financial drain.

This. Im on a tablet so i cant provide links but aside from the SI article about broke athletes linked above google the Pacquiao profile on GQ a few years back. MP’s entourage isn’t just big it’s also a little horrifying:eek: