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Author Topic: Anyone Know if It is Tax Deductible?  (Read 2296 times)

gameshowcrazy

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Anyone Know if It is Tax Deductible?
« on: February 16, 2010, 08:29:21 PM »
Had a thought today and was just wondering if anyone on here knows the answer:  are trips taken/expenses incurred while auditioning for game shows tax deductible?

My thought is this:  gambling losses are tax deductible because you are spending money (playing) with the intent of making (winning) money.  I would think any milage/bus tickets/hotels/meals for game show auditions would be deductible.

Anyone here know for sure?

Mr. Brown

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Anyone Know if It is Tax Deductible?
« Reply #1 on: February 17, 2010, 12:12:37 AM »
I am not an attorney (yet), nor am I a tax expert, but I'm going to have to say no, they're not tax deductible, at least based on your theory. The IRS definition of "gambling losses" just simply doesn't match up with your theory - it's a very traditional definition of "gambling" requiring a wager of some sorts and a net loss.

And based on everything I know about itemized deductions, I don't believe there would be one that would allow you to deduct such a thing... at least legally.
Cheers,
Mr. Brown, Esq.
‎"I am on a drug. It's called Charlie Sheen. It's not available because if you try it, you will die. Your face will melt off and your children will weep over your exploded body." -Charlie Sheen

SFQuizKid

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Anyone Know if It is Tax Deductible?
« Reply #2 on: February 17, 2010, 01:31:29 AM »
Nor am I an attorney, but I did ask a neighbor who works for a taxing authority.  Basically, deductions are allowable for expenditures that are incurred in the course of and required to produce that income.  In the case of gambling losses, they are only deductible insofar as they offset winnings.  Additionally, if some activity isn't your regular profession, it's considered a hobby, and deductions for hobbies are much harder to justify.

As for expenses like airfare, hotel, car, meals, etc. you would have to be able to convince an auditor that these were only for the game show and not for a vacation or other sort of personal entertainment.  When I was on Trump Card in 1990, an accountant friend who was a "very aggressive deductor" suggested that I could deduct my car mileage from Philadelphia to Atlantic City (where Trump Card taped) because my trip there was only to go on the show and not for any other purpose.  On the other hand, he told me that I could not deduct anything from a trip to LA earlier that year when I tried out for two other shows because "it looks more like a vacation."

Out of curiosity though I looked this up on the web and found this link that's one of many other opinions on the subject.

(Postscript: I did not deduct the mileage after all, in case any tax agents are following this board.)

gameshowcrazy

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Anyone Know if It is Tax Deductible?
« Reply #3 on: February 17, 2010, 02:55:32 PM »
[quote name=\'Mr. Brown\' post=\'236017\' date=\'Feb 17 2010, 12:12 AM\']I am not an attorney (yet), nor am I a tax expert, but I'm going to have to say no, they're not tax deductible, at least based on your theory. The IRS definition of "gambling losses" just simply doesn't match up with your theory - it's a very traditional definition of "gambling" requiring a wager of some sorts and a net loss.

And based on everything I know about itemized deductions, I don't believe there would be one that would allow you to deduct such a thing... at least legally.[/quote]


I was not trying to imply that auditioning = a form of gambling.

The money spent auditioning (bus fare, meals, etc.) is money spent in pursuit of making money; and for that reason I figure it could be deductible.  I was just figuring there were some actors on this board that audition for game shows and would know if it is allowed.  Also, many times when I do audition, the only reason I take the trip is the audition.  If my wife were to go with me, I have no intention of trying to deduct for her meals, etc. as that would not be for the purpose of the audition, purely for "vacation".

I had a way a few years ago to make my trip to audiiton for Wheel of Fortune deductible:  I went to see a lawyer regarding my business (I just made sure to schedule it on the same day as the audition).  Yes I would've gone to NYC that day for the audition on my own anyway, but the IRS couldn't tell me no in this case!

davidbod

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Anyone Know if It is Tax Deductible?
« Reply #4 on: February 17, 2010, 07:00:31 PM »
If the income is taxable, the expenses are deductible so long as they are for the sole and exclusive purpose of attracting that income. The authorities can't have it both ways.
David J. Bodycombe, Labyrinth Games

Author of How To Devise A Game Show

clemon79

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Anyone Know if It is Tax Deductible?
« Reply #5 on: February 17, 2010, 07:07:43 PM »
[quote name=\'davidbod\' post=\'236064\' date=\'Feb 17 2010, 04:00 PM\']The authorities can't have it both ways.[/quote]
Have you been to our country before, sir? :)
Chris Lemon, King Fool, Director of Suck Consolidation
http://fredsmythe.com
Email: clemon79@outlook.com  |  Skype: FredSmythe