That's a great point. They should be able to write off every expense associated with their training over the past 4 years. I'd argue that, with the exception of their primary residence, just about every dollar spent could be attributable to their training. Food, communications, coaches, gym time, pool time, transportation, hotel accommodations, etc. They may not be able to deduct certain entertainment expenses like booze, pot and Disney movies. But otherwise, I bet the government owes them money if they play the game right. They need to spend the money on a good tax attorney, which will also be tax deductible. LOL!
That’s how professional poker players do it. In Phelps’ situation, he is probably set up as a corporation.