Are things like race entries and accommodations at races, new equipment (like bike parts, swimming gear), bike maintenance, specialized nutrition (not regular food), etc. eligible for deductions?
A great deal will depend on the revenue. He may get advertising revenue, sponsoring revenue, and income from winnings. What expenses can be claimed will depend on the income. Bikes, themselves will be capital purchases and are depreciated annually rather than used as an expense against income. Parts, on the other hand, can be used as repair expenses, as can maintenance costs.
Entry fees and travel costs can also be used as expenses against income earned.
Nutritional items, such as supplements, are not deductible. Clothing, shoes, and similar items are not deductible.
If there is not sufficient income to cover the expenses, the business will show a loss carried forward from year to year. It cannot be used to reduce any other employment revenue earned when not competing.
You will need to report the income on the T2125. Your industry code will be 711219
A great deal will depend on the revenue. He may get advertising revenue, sponsoring revenue, and income from winnings. What expenses can be claimed will depend on the income. Bikes, themselves will be capital purchases and are depreciated annually rather than used as an expense against income. Parts, on the other hand, can be used as repair expenses, as can maintenance costs.
Entry fees and travel costs can also be used as expenses against income earned.
Nutritional items, such as supplements, are not deductible. Clothing, shoes, and similar items are not deductible.
If there is not sufficient income to cover the expenses, the business will show a loss carried forward from year to year. It cannot be used to reduce any other employment revenue earned when not competing.
You will need to report the income on the T2125. Your industry code will be 711219