If an Athlete is underaged (15-17yrs old) but breaking into the Professional league.... If the Athlete's business incurred a loss for the year. Can the athlete be included on the parent's tax returns (Child credit) or does the athlete still have to file his/her own tax returns and report the losses on a 1040?
What video games does he play? Is he losing his own money, or is it coming from the parents? There's no age limit on the Section 183 hobby loss rules. If he has a loss, he can create an NOL and use it in future years. I'm not sure whether it will help or hurt on the FAFSA.
Also, review the rules on start-up expenses.
Actually, this might be a subject that tax preparers need to watch, now that college athletes can be paid.
But keep in mind the problems that helicopter parents have caused for themselves (and maybe for tax preparers, when they claim "donations") in the cases publicized by Operation Varsity Blue.
There is a ruling for parents of athletes (actually athletes, not pretending) trying to write off the costs for their children to develop and participate, as donation to the sports, and those parents lost the case. I just tried a quick search and couldn't find it, but I recall it has to do with Tara Lipinski and her Olympics bid.
"Level Up" is a gaming function, not a real life function.
Parents are always at risk.
And athletes are one elbow injury away from completing the FAFSA.
"I have found out in later years we were very poor, but the glory of America is that we didn't know it then. All that we knew was that our parents - of great courage - could say to us, 'Opportunity is all about you. Reach out and take it.' "