7
   

Be the Best - Pay the IRS!

 
 
Reply Tue 7 Aug, 2012 12:54 pm
I didn't know that our Olympic medal winners have to pay taxes on their winnings..did you?
 
roger
 
  2  
Reply Tue 7 Aug, 2012 12:56 pm
@nqyringmind,
They get paid?
Miller
 
  1  
Reply Tue 7 Aug, 2012 01:03 pm
@nqyringmind,
nqyringmind wrote:

I didn't know that our Olympic medal winners have to pay taxes on their winnings..did you?


Of course, why not?
0 Replies
 
Miller
 
  1  
Reply Tue 7 Aug, 2012 01:04 pm
When my Poodle had the debris in his ears examined under the microscope, I had to pay a tax on the procedure, the tech used during the examination.

Is that fair?
0 Replies
 
engineer
 
  2  
Reply Tue 7 Aug, 2012 01:14 pm
@nqyringmind,
Sure, it's earned income isn't it? The other part of that is they can claim their training expenses as a deduction against that income. I think that will likely cancel it out unless they are well supported by some other organization.
nqyringmind
 
  2  
Reply Tue 7 Aug, 2012 01:17 pm
@roger,
The gold medal is valued at about $675, the silver $385 and the bronze $5.
Gold medal winners also receive a cash prize of $25,000, silver $15,000 and bronze $10,000.
nqyringmind
 
  1  
Reply Tue 7 Aug, 2012 01:19 pm
@engineer,
I get your point. But why should they have to pay for representing our country in the Olympic Games in the first place?
engineer
 
  1  
Reply Tue 7 Aug, 2012 01:20 pm
@nqyringmind,
While I read some post about the value of the medals, I doubt the IRS would ever try to put a value on it or try to tax it.
nqyringmind
 
  1  
Reply Tue 7 Aug, 2012 01:22 pm
@engineer,
I would think the same principle would apply to cash winnings.
ehBeth
 
  1  
Reply Tue 7 Aug, 2012 01:29 pm
@nqyringmind,
yeah, it was all over facebook last week

it's taxable income
0 Replies
 
engineer
 
  1  
Reply Tue 7 Aug, 2012 01:30 pm
@nqyringmind,
The principle for the medals is that they really don't have a value unless you can sell them. If an olympian did sell their medal, then yes they would owe taxes on the proceeds. Cash income is always taxable. Look at other athletes for comparison. Would you say that a tennis player who wins a big tournament should take home their $500,000 prize tax free? (Several players have run into tax problems, especially in Germany.) They pay taxes on the prize money but I doubt the IRS says "don't forget the trophy is worth $500!"
joefromchicago
 
  6  
Reply Tue 7 Aug, 2012 01:32 pm
@nqyringmind,
nqyringmind wrote:

I get your point. But why should they have to pay for representing our country in the Olympic Games in the first place?

They don't. They pay taxes because they receive income.
0 Replies
 
nqyringmind
 
  1  
Reply Tue 7 Aug, 2012 03:24 pm
@engineer,
IMO there are certain occasions/circumstances where income derived as a result of services or deeds performed as representatives and good will ambassadors of the United States, should be considered waivable with regard to taxation.
We want these athletes to be at peak performance every four years. For some, expenses for travel, equipment...etc outweigh the small stipend they receive for winning a medal anyway.
It's just nickel and diming.
The tennis player is a business. Not a person performing a service for no guaranteed or necessarily ongoing income.
The medals should be called gifts from the IOC and be non taxable.
engineer
 
  2  
Reply Tue 7 Aug, 2012 04:47 pm
@nqyringmind,
You dismiss the tennis analogy too quickly. Tennis players have no guarantee of ongoing income. Many journeymen tennis players just scrape by given all their expenses (coaching, travel, etc.) and a first round loss means you get virtually nothing. Get injured and you're screwed. Added to that is every time a tennis player steps on the court anywhere in the world they are playing for their country. When they actually play for their country directly (David Cup, Fed Cup), it's a serious blow to their ability to compete in money paying events. They still pay taxes on winnings.

If, as you say, expenses for travel, equipment, etc outweigh the small stipend they receive, then they owe no taxes as those expenses are tax deductible.
0 Replies
 
Linkat
 
  2  
Reply Wed 8 Aug, 2012 10:59 am
@nqyringmind,
Yes - just like anyone else that wins or gets a salary. They get money for getting a medal - I believe they get $25k for winning the gold and it goes down from there.

But on the positive side, it is unlikely that they pay taxes on it as they could deduct all the expenses to obtain this medal. I'd be more worried about paying the taxes resulting from the endorsements rather than the measly amount on the $25k.
0 Replies
 
Irishk
 
  1  
Reply Wed 8 Aug, 2012 01:04 pm
Several in Congress (never shy about jumping into the limelight or pandering) have introduced bills that would exempt Olympians from paying taxes on their winnings. Jay Carney indicated the president would not hesitate to sign such a bill.

I can't see it affecting most athletes, except maybe Phelps who won 8 golds in 2008. And, even then, with a really good accountant.....
ehBeth
 
  1  
Reply Wed 8 Aug, 2012 02:11 pm
@nqyringmind,
nqyringmind wrote:
The medals should be called gifts from the IOC and be non taxable.


My understanding is that if they were there in the role of "representatives" and "good will ambassadors" they wouldn't be allowed to keep the gifts.

Presidents / foreign gifts / taxes

http://www.reagan.utexas.edu/archives/reference/gifts.html
0 Replies
 
Linkat
 
  1  
Reply Wed 8 Aug, 2012 03:23 pm
@Irishk,
Just fluff to sign such a bill - as I said in the case of those that win a medal and do not get endorsements - they wouldn't pay anything. The costs for traveling and training far exceed what they win.

Phelps wouldn't matter any way as with all his endorsements - the winning $25 even for 8 medals is nothing compared to what he makes in endorsements.

Now here is the big question - what happens on a team sport say like basketball where you would have 10 or so team members - if they win the gold do they split the $25k - pretty low $2500 each (I'm not talking the overpaid men - I'm talking the women who could use the money).
nqyringmind
 
  1  
Reply Wed 8 Aug, 2012 03:50 pm
In the real world, after the dust settles and the cheering stops, some American Olympians will likely have to pawn their medals to pay their taxes.
engineer
 
  1  
Reply Wed 8 Aug, 2012 05:58 pm
@nqyringmind,
Is that what happens to other workers since we all pay taxes on income?
 

Related Topics

Should cheerleading be a sport? - Discussion by joefromchicago
Are You Ready For Fantasy Baseball - 2009? - Discussion by realjohnboy
tennis grip - Question by madalina
How much faster could Usain Bolt have gone? - Discussion by Robert Gentel
Sochi Olympics a Resounding Success - Discussion by gungasnake
 
  1. Forums
  2. » Be the Best - Pay the IRS!
Copyright © 2021 MadLab, LLC :: Terms of Service :: Privacy Policy :: Page generated in 0.04 seconds on 06/19/2021 at 08:42:38