New tax law and effect on college sports

This topic contains 3 replies, has 3 voices, and was last updated by  mtn2top 9 months ago.

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  • #27327

    GatorByte
    Participant

    https://www.usatoday.com/story/sports/ncaaf/2017/12/20/college-sports-impact-new-tax-bill-millions/968741001/

    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

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  • #27340

    vulcan_alex
    Participant

    Yes this is part of the deal and it will increase the costs of expensive employees, and somewhat decrease revenues. Now real Gators won’t be changing due to these changes.

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  • #27346

    GatorByte
    Participant

    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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  • #27372

    mtn2top
    Participant

    Anything that helps level the playing field is good for the game.

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