Next in the insane ways people avoid taxes we have Lamar Odom, a NBA player who was making $9.3 million in 2007 but felt personally victimized by the IRS when we has told he couldn’t deduct $172,000 for “fitness fees” and $12,000 in NBA fines.
Odom decided to attempt his hand at being a tax attorney and argued with the IRS that his fitness fees should be a deduction because as a pro athlete, he is expected to stay fit and healthy making his fitness routine a business expense. He also argued that his fines were “common” among professional athletes and are work related, making them an ordinary and necessary business expense (despite them being assessed for doing things he shouldn’t be doing).
In the end, the tax court agreed with Odom and settled with him for roughly 10 cents on the dollar. If you have tax trouble, contact our office at 816-524-4949 or check out our website at Hoorfarlaw.com.