Bank Deal: Earn 1.00% APY on an FDIC-insured savings account at Barclays Bank.
In case you haven’t heard, New England Patriots coach Bill Belichick was recently fined $500k by the NFL after his staff was caught videotaping the New York Jets’ defensive signals for future reference. What’s particularly interesting about this case is that according to a variety of tax experts, Belichick might be able to deduct the $500k fine as a business expense..
Apparently, this issue turns (at least in part) on whether or not Belichik broke the law, as fines paid to the government for a violation of the law cannot be deducted. Short of that, “ordinary and necessary” business expenses are deductible.
According to Myron Grauer of the Capital University Law School, the fine is deductible because it’s an “ordinary” expense:
“…in this day and age, it probably is â€˜ordinary’ for coaches and players in professional sports to cheat and, if caught, to be fined by the league, the fine levied on the Patriotsâ€™ coach can be viewed as an ordinary and necessary business expense.”
Mike McIntyre of Wayne State University went on to argue that:
“The fine was for violating a rule, not for cheating. No professional football game is played without someone breaking the rules. It is expected that people will break the rules.”
Of course, the issue of whether or not Belichick’s actions were “ordinary and necessary” for an NFL coach is debatable. In fact, if we go too far down that road, college football coaches would be allowed to deduct money that they pay to prized recruits to get them to commit to their school. Sure, it’s against NCAA rules, but if it’s not illegal, and if everyone is doing it, then it’s ordinary and necessary… Right?
- How to Become a Millionaire
- How to Get Out of Debt
- The Best Dollars I've Ever Spent
- How Our Estate Plan is Structured
- How We Paid Our Mortgage In Less than 10 Years
- Money Making Ideas
- How to Manage Your Asset Allocation with Multiple Accounts
- Consumption Smoothing - Save While the Saving's Good
- How to Save on Groceries
- How Much Life Insurance Do You Need?
- Eleven Great Books About Money
- Dave Ramsey is Bad at Math (692)
- Dish Network Customer Service SUCKS (535)
- $8,000 Homebuyer Tax Credit (429)
- Pay Off Mortgage Early or Invest? (424)
- How to Claim the First-Time Homebuyer Tax Credit (352)
- Termite Control: Sentricon vs. Termidor (326)
- How Much Should You Pay a Babysitter? (284)
- Ethanol Blended Gas = Lower Mileage? (272)
- Reduced Credit Limits? Share Your Experience (256)
- $15,000 Homebuyer Tax Credit (242)
- Buying Furniture off the Back of a Truck (230)
- Will Mac OS X Lion Kill Quicken 2007? (191)