POTENTIAL TAX BENEFITS FOR THE
IPT PROFESSIONAL

As professionals competing for prize money and other prizes, it is important for you to be aware of the value and benefits of good tax planning and advantageous tax return reporting of your golf business. January is the best time to start thinking about "protecting your tax dollars" by tax planning for 2009 and filing your tax return for 2008.

With many of you involved in most of the International Players Tour tournaments, practice rounds, practice sessions and other related activities, understanding the tax implications and having a personal tax consultant who understands the financial and competitive aspects of golf to represent your interests in the planning and tax return filing strategies is vital in assuring that you do not pay more tax than you should.

The tax laws provide guidelines for self-employed golf professionals to write off many of their golf business expenses, such as membership fees, tournament entry fees, auto expense, balls, gloves and supplies, practice rounds, golf lessons, golf club depreciation and other related expenses. International Players Tour professionals who devote a continuous and significant amount of time to the tour and who demonstrate a good faith effort to produce income or a profit through their golfing activities are eligible to deduct these costs for tax purposes and offset prize money income.

The tax laws have developed factors to be considered in determining whether an activity represents a business that produces income and potential profit versus a personal hobby. Meeting these factors depends upon the primary purpose of the professional golfer when entering the business, planning skills, and the manner in which he or she organizes a system to track and document daily activity, prize money income, expenses, business use of the auto and the like.

In other words, the International Players Tour player treats the golf tour activity as a real business throughout the year. At the end of the year the International Players Tour professional's records summarize all income and expenses (that is supported by receipts, memoranda and other documents), which will be reflected within their Form 1040 tax return on Schedule C (Profit or Loss From Business).

For additional information, contact your personal tax consultant. Your tax benefits resulting from your International Players Tour participation can be significant!

Hit 'em straight and best of success on the International Players Tour!!!!