NFFC Payment Plans For 2008

King of Queens · Post by **King of Queens** » Wed Dec 03, 2008 6:45 am

Originally posted by GK:
...need help in understanding here please...

1) if SNAKE elects to defer payment on his earnings until after January 1st will he or will he not be responsible for the winnings for 2008?...

2) can entry fees be written off (deducted) from the taxable winning proceeds?...

...anyone please?....thanks much...SNAKE You should talk to your accountant.

King of Queens · Post by **King of Queens** » Wed Dec 03, 2008 7:11 am

Originally posted by GK:
quote:Originally posted by King of Queens:
quote:Originally posted by GK:
...need help in understanding here please...

1) if SNAKE elects to defer payment on his earnings until after January 1st will he or will he not be responsible for the winnings for 2008?...

2) can entry fees be written off (deducted) from the taxable winning proceeds?...

...anyone please?....thanks much...SNAKE You should talk to your accountant. [/QUOTE]...fully understand on #2 but on #1 trying to decide whether to delay payment or not until after the New Year of '08 and if this is done then why should the winnings count for '08 (unless Krause has in it's records that the payouts occured in '08)?...do you know the answer to this here?...thanks much...SNAKE [/QUOTE]Only the folks in Cincinnati can answer #1. It all depends on when they process the "winnings".

Greg Ambrosius · Post by **Greg Ambrosius** » Wed Dec 03, 2008 7:29 am

Originally posted by King of Queens:
quote:Originally posted by Quahogs:
quote:Originally posted by King of Queens:
quote:Originally posted by Quahogs:
quote:Originally posted by King of Queens:
You can apply your winnings as a credit towards a future contest, but the full amount is still reported to the government?

Is there any perk to this interest-free loan other than "convenience"? '08 tax deductions on 08's winnings ? [/QUOTE]Probably not. My guess is that the payments (or 2009 credits) that are processed next week will appear on a 2008 1099-M. Anything beyond that will not be reported until 2009. Thus, credits OR payments from this December's league playoffs, Championship, Consolation, etc. will not be a factor until April 15, 2010. [/QUOTE]Payments now (dec 08) for a contest held in mar 09 can't be deducted from 08 winnings ? Wouldn't this form (transferring $ which will be issued under a 1099-m for '08) be proof of pay't in dec 08 ? [/QUOTE]I don't believe F&W will include those transfers on your 2008 1009-M. They would need to process the transfer prior to December 31, 2008. Based on past payment history, I doubt it'll happen. Thus, the transfer would appear on your 2009 1009-M.

Talk to your accountant and see what you can do. If the only "proof" is the 1099-M, you're probably out of luck. [/QUOTE]I don't totally understand what Glenn is saying here, but every year in the past for the NFFC these early checks have been dated the year of that event as we always get them out before the end of December and that is the goal this year. Your early checks will be part of 2008 unless something unforeseen happens.

mikeybok · Post by **mikeybok** » Wed Dec 03, 2008 7:29 am

Glenn

Assuming you are cash basis for tax purposes your income and expenses occur in the year you receive them ... so the timing of when you get them and when you pay them is everything.

There might be other ways to address taxes ... But this is how I understand it.

Assuming you are cash basis for tax purposes and you want to apply expenses and entry fee's against your earnings ... you should/could consider this self employment (business). This also means if your income is over $400 bucks you will also need to pay payroll taxes on this income as well (FICA, FUTA, maybe SUTA) ... as will as pay income taxes. It's a little ugly!

You other option is to consider it a hobby ... but it does not allow expenses to be deducted.

You could consider it gambling winnings ... but I think this is inaccurate ... since it is not considered gambling by the government ... and it would only allow fee's to be expensed.

Don't rely on just this post (as I am not a CPA) ... but I hope this helps.

Mike

[ December 03, 2008, 01:32 PM: Message edited by: Ugly Yellow Tomatoes ]

Jersey Dawg · Post by **Jersey Dawg** » Wed Dec 03, 2008 8:53 am

I believe "hobby" expenses can be deducted, but only the costs in excess 2% of your income. At least that is how I have treated them over the past few years.

Ted's Cracked Head · Post by **Ted's Cracked Head** » Wed Dec 03, 2008 9:30 am

I have written off all of my expenses related to FF when I have won including; entrance fees, hotel, airfare, cabs, meals, DirecTV (because I NEED the NFL package), any subscriptions, office supplies, internet connections (Verizon wireless card)...etc.

When I won the 100K in 2006 I was paid in 2007. In that case I did not have to pay taxes on the winnings until I filed my 2007 return April 15th of 2008.

This allowed me to defer paying that 32K for 15 months. It also allowed me to write off my 2006 entry fees off of my 2005 winnings making this a win/win for me as far as taxes go.

Then in 2007 when I took a loss, it helped as I wrote those costs (above) off against the 100K I received in 2007.

I can forward my accountants info to anyone who wants it. He cannot leave his house until he gets the bracelet off and his probation is done but......

Captain Hook · Post by **Captain Hook** » Wed Dec 03, 2008 9:48 am

Schedule C

(takes care of everything as former Champ RobB has said above but be wary that not all tax accountants are versed on how to use it)

mikeybok · Post by **mikeybok** » Wed Dec 03, 2008 11:06 am

Originally posted by Captain Hook:
Schedule C

(takes care of everything as former Champ RobB has said above but be wary that not all tax accountants are versed on how to use it)

... Just the ones with the ankle bracelets.