Entertainers and athletes face some of the most complex tax issues in today's economy. Learn about the impact on their multi-state taxation, endorsement income, touring and performance revenue, entity structuring, wealth preservation and emerging planning opportunities.
DESIGNED FOR
CPAs and tax professionals in public practice, business managers and financial advisors who serve (or want to serve) professional and collegiate athletes, musicians, performers, content creators and other high-profile, high-income individuals — as well as CPAs advising closely held businesses with irregular, multi-state income
BENEFITS
- Recognize the planning and cash flow issues created by irregular, lump-sum and 1099-based income.
- Determine when an entity structure — and which one — makes sense for a performer, athlete or creator.
- Identify multi-state and jock tax filing obligations triggered by games, tours, appearances and brand events.
- Distinguish among the client's revenue streams and apply the correct sourcing and reporting treatment to each.
- Apply current rules to the deductions this client base most often gets wrong — and most often gets examined on.
HIGHLIGHTS
This practical program provides CPAs with real-world insights and strategies for advising clients in the entertainment and sports industries, including:
Importance of tax planning and income management
- Irregular 1099 income and proactive cash flow planning
- Quarterly estimated taxes and avoiding underpayment penalties
- Timing income and expenses to manage taxable income
- Setting aside reserves for federal, state and local taxes
Entity structure
- Sole proprietor (Schedule C) simplicity vs. audit risk
- S corporation election and potential self-employment tax savings
- Reasonable compensation requirements for S corporation owners
- When to transition from Schedule C to an S corporation
State taxation and nexus
- Multi-state nexus from travel, games, touring, filming and brand events
- Filing obligations triggered by income earned in different states (the "jock tax")
- Residency vs. nonresident considerations, including changes of domicile
- Activity and income thresholds that drive state filing requirements
Income sourcing and revenue streams
- Services (performance, appearance, content creation) vs. product and royalty income
- Digital and NIL income sourcing complexities — where is the income "performed"?
- Endorsements, affiliate and ad revenue, and sponsorships treated differently
- Tax consequences for student athletes on NIL income
- Platform and payer reporting inconsistencies (1099-NEC vs. 1099-K)
Business expense and deduction optimization
- Equipment, editing software, training, and home studio costs
- Travel, meals and event costs tied to performance and content production
- Personal vs. business expense allocation and IRS scrutiny
- Capitalization vs. expensing decisions (gear, instruments, vehicles)