I don't know why anyone would even think NIL would be a "charitable" contribution. It's pretty clearly a business expense of purchasing NIL rights from an individual for purposes of advertising and publicity. Businesses should be able to count it as a business expense and players receiving the money need to report it as income. NIL is not a donation. Now of course you need to demonstrate you actually did use the purchased NIL rights for a business purpose and just didn't give the money as a "gift".
In the article it stated the collectives filed for charitable status under the furthering education provision.
You don't contribute to NIL as a "gift". You're buying something in return. That's the definition of what NIL is. If you want to make a charitable donation, then you contribute to a University foundation or even the University athletic department. You can't count gifts of money to players as being a charitable donation.
If the collective is categorized as a charitable entity, then funds donated to that entity may fit the criteria as a charitable contribution.
Well what are you donating money to? It's not the University because NIL is technically outside the management control of the Universities. Yes, I know there is some "unofficial" coordination going on - but that's kind of a grey area and might be regulated in the future. NO NIL entity I know of has been set up or organized as an official charitable organization. Charitable organizations have reporting/filing requirements as the BLM people learned after the fact.
Did you read the article? If there were no collectives that were being set up as charitable organizations then there would be no need for the IRS to make this ruling.
Well anybody can attempt to set them up as a charitable organization BUT that does not mean the IRS will officially approve them as charitable organizations. Do you know of any NIL organizations that have been OFFICIALLY approved as a charitable organizations for tax purposes? I do not but maybe I'm misinformed.
I'll let the discussion go, it's not a factor either way for me personally. BUT has the IRS recognized contributions to any of them as qualifying as a "charitable donation" for tax return purposes? I thought that was the gist of the article.
But it also later in the article the new memo that came out they will not give collectives charitable status going forward and will audit the ones that have given status to , reason was the furthering education provision does not cover pay to student athletes. Interesting just read ye whole article.
I like this idea in theory but it isn’t possible. Not in a fair way that is. What percentages would you use, the same for the star big time QB as the 3rd string safety? And what about football vs. other sports, pretty much all of which actually lose money. Why should baseball players get paid anything extra when baseball actually loses money? Football makes all the profit for 98% of schools.
we are already on that slope - it is what the other professional leagues do
It actually SHOULD be tax deductible if you're using the individual for advertising etc. NOT deductible if it's just a general donation from Joe blow
some people forget what the "I" in NIL stands for
no they're just telling the ugly jealous dweebs who work for dying media companies to shut up & deal with it
There is no line on your schedule C for “charitable contributions”. Maybe corporations can find a way to bury a charitable contribution in their tax return. IF I got hit up for contributions I either had to figure out a way to use them as a business expense or deduct them personally on schedule A. THAT is why many charities sell “advertising” in a program or newsletter to raise funds. Advertising no matter how inefficient it may be is justifiable as a business expense.
Better let the IRS know. Apparently they’re under the impression that corporations and businesses are making tax deductible contributions to charitable organizations. Why else would they make this ruling? I doubt they’re worried about couple of hundred dollar donations to the Boilermaker Fund from Tom and Bill.
People are trying to deduct things they can’t deduct as legit business expenses. That is why the IRS chimed in.
They threw my 2020 tax return away and made me send another. Even though they cashed my check in March of 2021. Guess who got a penalty.
Thankfully I'm not the tax guy at my office. I couldn't deal with it. They lose returns, refuse to pay huge refunds, refuse to acknowledge payments, etc. And there is literally no way to talk to anyone that can do anything to assist. Our tax guy works tirelessly with a taxpayer advocate who tries to fix things but - just when she thinks something is fixed - finds that her work has been deleted and has to start over again. It's a nightmare.
The not being able to talk to somebody is a relatively recent issue. Otherwise I haven’t had any problems dealing with the IRS other than that during COVID it took them over a year to process my return. The “work from home” thing has been a disaster for IRS productivity.
"IRS productivity" is an oxymoron
Productivity is used only from the standpoint of getting returns processed and assisting tax payers. 😉
No. Again read the article. There is a direct connection between the IRS and the NIL collectives that have been set up to take payments from boosters and businesses. This isn't about people trying to deduct a business expense.
Dingle does not need to read, he has family in high places that read for him.
Yep. Can't talk to a live person. One time for spite I was on hold for over 2 hours. And they want more money?? F them. What did they do with it and why are they paying people not to come to work?
Billionaire tax cheats have paid lobbyists a lot of money over the years to make sure the other 99% of us carry the water for them in this argument. Pay your taxes and don't try anything stupid and nobody will have a thing to worry about. But I want every last taxable dollar that those NIL brats from Georgia and Alabama get handed to them for doing nothing to go to Uncle Sam. Same goes for those media influencers on YouTube.
