Is a fee paid to a sports agent deductible?
ProSeries : 2011A client was drafted to a pro sport team in 2011. He paid a fee to an agent. Is this fee deductible and if so, where do I enter it?
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02/06/12 3:37pm PST
Viewed by asker 02/09/12 3:49pm PST
Viewed by asker 02/09/12 3:49pm PST
4 Replies
tilt53
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02/06/12 3:39pm PST
What form does he file on in which program?
Hail Cleo-Cat-Tra, Queen of Denial. I didn't do it.
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02/06/12 6:19pm PST
He only has 1 w-2 which is the earning from the baseball team. He will not have enough deductions to itemize on his federal return (1040-EZ) but will on his state return. I thought this would be treated as an employee expense, but this was a sign on bonus that was paid before he began earning wages so I wasn't sure.
peterhawaii
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02/06/12 4:00pm PST
The solution
If his income is W-2 income he should have lots of other deductions. I would put this on Form 2106 which would move the expenses to Schedule A subject to 2% of AGI
peterhawaii
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02/06/12 8:28pm PST
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If the bonus is included as W-2 wages, then the deduction would go on Form 2106. Perhaps the bonus comes on a Form 1099 MISC, then the income and expenses go on Schedule C.
