SCH C for Prof Figure Skater

[ETax847]

Client quit his job to pursue a career as a male figure skater.  Hired coaches, and trains 12-16 hours per day.  Was not profitable in year 1, but did earn some prize money, however had substantial expense.  Can client deduct all of his expenses associated with this income.  Expenses were huge in year 1.

[jasdlm]

Sole proprietor and not smLLC?

[ETax847]

There really wasn't much in terms of start up costs.  Should I list all ordinary and necessary expenses on sch c?

[DANRVAN]

Depends on facts and circumstances.  Trains 12 -16 hours a day?  How much was his income vs. expenses?  What source of funds did he live on? 

[ETax847]

Income was roughly $3k, expenses for coaching, training and ice time etc are substantial.  He is competing internationally and trying to make the usa olympic team.  Sch C?

[Lion EA]

Training for a new career is non-deductible.  Training to keep up and improve his skills once he's a pro are business expenses.  You'll have to do some questioning with your client over what the money was spent on, when, etc.

Does he have sponsors?

[ETax847]

Thanks, given that income was earned, I am leaning toward considering it other income and offesetting expenses on sch A.  thoughts?