Question about help with showcases

On the PG showcase forms, there is a sponsorship form that can be filled out so the company is listed the day of the showcase. I think that the check cannot be made out to your son, it has to be made out to the showcase organization.

Thanks. This is actually for a showcase at Young Harris College. There are apparently a whole bunch of other schools and MLB representatives there. Don't see any spots on the form for a sponsor. It is good information for the next PG we do though.

quote:

Originally posted by bballman:
Thanks. This is actually for a showcase at Young Harris College. There are apparently a whole bunch of other schools and MLB representatives there. Don't see any spots on the form for a sponsor. It is good information for the next PG we do though.

bball; son has attended that Showcase the past few years, Coach Robinson does a fantastic job, events flow nicely, Coaches and Scouts show up etc, great small event!

I've heard the same thing Prime.

So, any input on this? Would this be violating any amateur status?

I'm not an NCAA official or a licensed Accouintant, but I did stay at a Holiday Inn Express a few years ago!

I'd say; "Don't do it!"

It could be perceived as a payment to your Son from the company.

It also would not look good if your company is audited.

I would hire your Son as a part-time employee and have him do something of value and then pay him.
It is a business expense, hence deductible, and even though you need to take out FICA, etc, your Son will probably not incur much tax liability, if any, if he doesn't have another job.

bballman,

Unless there is a business purpose for the payment, unless you and your brother can show the payment correlates to the production of income, I doubt seriously it would be tax deductible to the business. It is not advertising and it is not a donation.

Just pay the fee.

I doubt the IRS would see a difference in paying you for work versus him paying for a showcase in exchange for your work. This would mean tax implications for you, although likely small. However, I'm no CPA so I'm not the one to give you advice.

More concerned about implications for son than the company.

I'm no expert but don't see this as a future conflict; unless you guys have provided funds to other athletes and are looking to "recoup" your expenses plus interest at a later date. Then I guess you could be acting as Agent wannabees.

Conversely, as a business owner you only have to answer to your auditing CPA firm, if they ask, why you are spending company funds on personal expenses. If your business with your brother is a legal partnership, it's all personal funds anyway.

You are just cheating the IRS ... out of their $50 or so. I won't tell.