NBA Star to IRS: My Fines are Deductible

Hefty fines levied on professional athletes for various infractions are so routine these days that they almost seem like part of the cost of doing business. In fact, Los Angeles Lakers star forward Lamar Odom thinks that's exactly what they are: legitimate, tax-deductible business expenses. Forbes.com's William P. Barrett reports that Odom is challenging the IRS in federal court over its decision to deny his attempt to deduct $12,000 in fines levied by the NBA from his tax bill for 2007.

Odom also wants to deduct $178,000 he says he spent on efforts to get himself in shape to play basketball.

In a U.S. Tax Court filing, Odom declared that fines imposed on athletes "commonly assessed," "work-related" and "not imposed for the violation of any government law." Therefore, he argued, they are an "ordinary and necessary employee business expense." As for deducting the training expenses, Odom said that was legitimate because his NBA contract requires him to be in top physical condition.

So far, the IRS isn't buying. In a bill sent to Odom after he filed his initial tax return, the agency said, "We have disallowed some of the expenses you claimed as business expenses because it was determined they were personal expenses and not deductible."

Odom may be fighting his tax bill on principle, but he probably doesn't exactly need the money. His court filing puts his gross income in 2007 at $9.3 million.

(Hat tip: ESPN Los Angeles)