RE: IRS may determine the NIL collectives are not charities
I mean. The kids will be getting a tax bill regardless if their NIL earnings are from a nonprofit. But, now, those entities may also be paying big tax bills.
Bagmen man your posts. The kids may be getting a big tax bill.
And they should get a tax bill. Name, Image, and Likeness are commercial endeavors. End of story. And any boosters, or associations of them which thought this was a neat way to buy players just stepped in knee deep hog slop and should become extremely uncomfortable. Pay for play will finalize the commercialization of college athletics. And the bag men can pack it up.
Bagmen man your posts. The kids may be getting a big tax bill.
And they should get a tax bill. Name, Image, and Likeness are commercial endeavors. End of story. And any boosters, or associations of them which thought this was a neat way to buy players just stepped in knee deep hog slop and should become extremely uncomfortable. Pay for play will finalize the commercialization of college athletics. And the bag men can pack it up.
Bagmen man your posts. The kids may be getting a big tax bill.
And they should get a tax bill. Name, Image, and Likeness are commercial endeavors. End of story. And any boosters, or associations of them which thought this was a neat way to buy players just stepped in knee deep hog slop and should become extremely uncomfortable. Pay for play will finalize the commercialization of college athletics. And the bag men can pack it up.
RE: IRS may determine the NIL collectives are not charities
The "tax bill" here isn't new for those receiving NIL payments- that already happens.
The "tax bill" is for donors. If the NIL Collective you gave to qualifies as charitable, you could deduct the payment as a donation on Schedule A of your tax return. For the ultra-rich, this is a big tax avoidance maneuver.
If the NIL Collective is NOT charitable, you don't get the deduction.
RE: IRS may determine the NIL collectives are not charities
(07-02-2023 06:38 AM)ccd494 Wrote: The "tax bill" here isn't new for those receiving NIL payments- that already happens.
The "tax bill" is for donors. If the NIL Collective you gave to qualifies as charitable, you could deduct the payment as a donation on Schedule A of your tax return. For the ultra-rich, this is a big tax avoidance maneuver.
If the NIL Collective is NOT charitable, you don't get the deduction.
Some NIL collectives are set up expressly to provide the fig leaf that they are charitable in nature. That is, they associate the players with, and/or have them participate in PSAs for tax-exempt organizations or activities.
To the extent the amounts paid to the players exceed the fair market value of their participation, the IRS is certainly within their rights to deem those collectives to be non-exempt entities. The problem the IRS has is that they don't have the resources to police individuals who falsely claim deductions for the contributions they make to such organizations. They can only catch the few who are selected for audit.
RE: IRS may determine the NIL collectives are not charities
Man some of you people really aren't getting it. Anybody receiving NIL money has already been paying taxes the entire time. This has nothing to do with that aspect of human existance that is as unavoidable as death.
All this means is that those contributing to the NIL collectives will not be able write it off as a taxable donation. That's it.
The nutty idea that that athletes would somehow avoid paying taxes was just whacko. It never made sense to me, and I never understood how anybody could come to such wild fantasy of a conclusion.
(This post was last modified: 07-02-2023 01:22 PM by ouflak.)