November 9, 2012
Brunson: Lance Armstrong and the Race for Deductibility
As a result of the doping scandal, Lance Armstrong has been stripped of his seven Tour de France wins. In addition to being erased from the record books, Armstrong will have to return up to $16 million in purses and bonuses he received as a result of his win. In this paper, I discuss the tax consequences to Armstrong of his returning his winnings.
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Fascinating article. The parenthetical, (unless he is subject to AMT), seems really optimistic. It's hard to imagine that Lance would not be subject to the AMT unless he has a boatload of other income (much, much more than the $16 million of deductions). Thus the tax savings from the deduction will only be to the point where it reduces regular tax below tentative AMT, which could be not much at all.
Posted by: Len Burman | Nov 9, 2012 5:53:19 PM
Aside: USADA was on a witch hunt out to get Lance. It knew that 20 out of 21 riders on the podium during the 7 years Lance won allegedly or admitted to doping. USADA had information on active US riders, who would hae been DQ'ed from riding, that it did not disclose/share for YEARS in an effort to prove Lance doped. USADA did not care about any of the other cheaters or act in accordance with its role to prevent doping by ANY US athlete.
Also, everyone wants money from him. What about consumers who bought gear and all the big companies that got rich off of it? Are they reimbursing consumers or keeping the profits? Should these entities
Finally, Lance beat all the other doped riders during the "doping era" of the sport. Everyone was on a level playing field and he won.
Posted by: taxguy | Nov 10, 2012 6:15:52 AM