- 19 - prorating it among the wrestlers. As the owner of MBWC testified, this split the cost of airline transportation between the club and the wrestlers. When the wrestlers had paid for their own transportation, there was no deduction from gross receipts for transportation prior to the split between the club and the wrestlers. Therefore, the wrestlers each received more from the receipts of the show than they did after the club paid the airline ticket costs or chartered plane costs and deducted it, as the wrestlers say, "off the top" of the take before its division between the wrestlers and the club. In the economic sense, the wrestlers paid a part of their own airline transportation by receiving less for wrestling at performances when they went by airplane than they would have received had the club not furnished them with the airline tickets. Petitioner's return preparer was convinced that if the club had paid out the amount for the airline tickets as the club manager testified, the amount should have been shown on the Forms 1099 furnished to the wrestlers as part of payment in money or in kind to the wrestlers for the year. Whether or not she is correct in her conclusion that the amount paid by MBWC for air fare should have been included on the Forms 1099, there is certainly much to be said for her position that it should have been. Many people do not understand the concept that a deduction cannot generally be taken for something where an equivalent amount has not been included inPage: Previous 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Next
Last modified: May 25, 2011