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Like other non-profit organizations, colleges will be responsible for paying a 21% excise tax on annual compensation above $1 million that goes to any of the organization’s five most highly compensated employees. The tax is set to take effect on compensation earned, beginning Jan. 1. It also will be applied to certain types of what the legislation calls “parachute payments,” or separation payments like a buyout. At many FBS schools, coaches and/or the athletic director are among the institution’s five highest-paid employees and making more than $1 million.
You will no longer be able to deduct 80% percent of you booster fee/donation
From everything I have read this is a big deal. A Bull gator giving 15K may have been getting 30% back in taxes. No more. It won’t affect me as I file short form. I used to give $ to UF because my employer matched it. Don’t work now that’s better. The tax break is an incentive to give. I’m not trying to be political. It may be best for the country don’t care to argue that but it will take money away from education in my opinion.
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