The value of the metal in the gold medal is around $650 (gold medals are only like 1% gold, and are mostly made of silver), but each winner of a gold medal gets a cash prize of $25,000.
Thanks, AU. I didn’t know about the cash payment from the US Olympic committee for a gold medal. $25000 is a lot of money unless the athletes have been living on nothing.
My guess is that if they file as independent businesses, that their expenses to get to the Olympics will eat up far more than that 25 grand.
One of the inequities of our tax system is that individuals can’t take off their expenses and have their income be only their profit.
Another reason to have all taxes be consumption taxes, imho.