(11-17-2017 04:53 PM)UABslant Wrote:  Who's really going to quit buying tickets because they don't get a tax deduction? Maybe businesses that buy blocks of tickets?
All I can say is that any athletic department that can't take the hit of losing a million or two has never worked for a G5 conference school.

Does this bill also affect Pro Sports season ticket tax deductions? Or just tickets issued by institutions of higher learning? When I worked for a record company here in Atlanta, we had season tickets to the big three, Braves, Falcons and Hawks. We had to submit the annual paid invoice up to Time Warner accounting in NY, well before each season started for deduction purposes.

As I read the article it wouldn't change the business/entertainment expense just the charitable giving deduction.

Here is my understanding:
The old rule - if you give a charity/not for profit money (anything of value) and receive something in return, then the value of what you are allowed to claim as a tax deduction is the amount that you gave less the value of what you received. If you give $50 and receive a $50 ticket then you have $0 deductible. Any amount above the actual ticket price that you donated to a 501c (booster club) then that amount was tax deductible.

What the new rule is changing is that the ticket is not the printed face value but the sum total of ALL required payments. For example, you are required to give an annual donation to the booster club in the amount of $300 to be allowed to purchase a $50 ticket between the 40s. Without the $300 'donation' you cannot purchase the $50 ticket between the 40s causing the 'real' value of the ticket to be $350, therefore you again have a $0 deductible amount.

(12-20-2017 05:52 PM)RGTech98 Wrote:  As I read the article it wouldn't change the business/entertainment expense just the charitable giving deduction.

Here is my understanding:
The old rule - if you give a charity/not for profit money (anything of value) and receive something in return, then the value of what you are allowed to claim as a tax deduction is the amount that you gave less the value of what you received. If you give $50 and receive a $50 ticket then you have $0 deductible. Any amount above the actual ticket price that you donated to a 501c (booster club) then that amount was tax deductible.

What the new rule is changing is that the ticket is not the printed face value but the sum total of ALL required payments. For example, you are required to give an annual donation to the booster club in the amount of $300 to be allowed to purchase a $50 ticket between the 40s. Without the $300 'donation' you cannot purchase the $50 ticket between the 40s causing the 'real' value of the ticket to be $350, therefore you again have a $0 deductible amount.

That's about right but the donation had been limited to 80% under existing rule. So in your example the price paid for the ticket is not deductible and the $300 donation is 80% deductible because you received the right to purchase the tickets. So you could take a $240 charitable deduction. Now that 80% is reduced to zero.

(11-17-2017 06:16 PM)mturn017 Wrote:  

(11-17-2017 05:09 PM)goliath74 Wrote:  

(11-17-2017 05:05 PM)usm99 Wrote:  

(11-17-2017 04:53 PM)UABslant Wrote:  Who's really going to quit buying tickets because they don't get a tax deduction? Maybe businesses that buy blocks of tickets?
All I can say is that any athletic department that can't take the hit of losing a million or two has never worked for a G5 conference school.

Exactly. When i buy my 2-3 season tickets for football and baseball it's more to support the program than it is for the tax write off part of it. But then again, I'm not the one donating $50k plus with the tax write off part as part of the motive.

There are organizations that buy thousands of tickets for their employees as a reward. There are also charities or corporations, such as Make-A-Wish or Microsoft and others that buy tickets for handicapped kids or unprivileged kids who, otherwise, would not be able to go. They might not be able to write them off as the work-related expense (for the former) or charity (for the latter) as they used to. There will be a reduction in that activity. How much of a reduction it will be - I don't know.

This has nothing to do with the purchase of the tickets. Though the bill also eliminates the business entertainment expense so if you're used to taking clients out to games and writing it off then that wouldn't be allowed anymore but that would include golfing, strip clubs, dinners or anything else you might do to shmooze customers. Currently you only get 50% of these costs.

Individuals aren't allowed a deduction for the purchase of athletic tickets but if they make a contribution to amateur sports organizations then they're considered a charitable deduction. If you get "points" or any kind of priority in your ability to buy tickets based on your donation then that deduction is limited to 80%. The house bill would eliminate that deduction altogether. However, you can give to college athletics with no limitation if you don't receive rights to buy tickets and as far as I know that won't change. So let's say you give 10k to you schools athletic club and you get to pick your seats based on that donation and your satisfied with those seats. If you wanted to donate to say a capital campaign or fund an athletic scholarship endowment, as long as those donations don't increase your standing in the seating priority ranking they are and as far as I can tell still will be fully deductible.

It'll be interesting how schools would respond if this went through. Maybe give more weight to how long you've been giving. I think where there's strong competition for good seats there still will be but it would likely take a chunk out of everyone. I'm not sure if it's included in the senate bill, which is really the one to watch. I doubt the senate will bother taking up the house version.

Do you think this affects us with ODAF?

Could be all wet, but this sounds like it's aimed at seat licensing?

(12-21-2017 08:51 AM)mturn017 Wrote:  That's about right but the donation had been limited to 80% under existing rule. So in your example the price paid for the ticket is not deductible and the $300 donation is 80% deductible because you received the right to purchase the tickets. So you could take a $240 charitable deduction. Now that 80% is reduced to zero.

I think you and RGTech98 are correct. Rice sent out an e-mail today encouraging us to send our Owl Club donations for 2018 before December 31, 2017, so they are 80% deductible on our 2017 taxes.

(12-21-2017 09:53 AM)odu09 Wrote:  

(11-17-2017 06:16 PM)mturn017 Wrote:  

(11-17-2017 05:09 PM)goliath74 Wrote:  

(11-17-2017 05:05 PM)usm99 Wrote:  

(11-17-2017 04:53 PM)UABslant Wrote:  Who's really going to quit buying tickets because they don't get a tax deduction? Maybe businesses that buy blocks of tickets?
All I can say is that any athletic department that can't take the hit of losing a million or two has never worked for a G5 conference school.

Exactly. When i buy my 2-3 season tickets for football and baseball it's more to support the program than it is for the tax write off part of it. But then again, I'm not the one donating $50k plus with the tax write off part as part of the motive.

There are organizations that buy thousands of tickets for their employees as a reward. There are also charities or corporations, such as Make-A-Wish or Microsoft and others that buy tickets for handicapped kids or unprivileged kids who, otherwise, would not be able to go. They might not be able to write them off as the work-related expense (for the former) or charity (for the latter) as they used to. There will be a reduction in that activity. How much of a reduction it will be - I don't know.

This has nothing to do with the purchase of the tickets. Though the bill also eliminates the business entertainment expense so if you're used to taking clients out to games and writing it off then that wouldn't be allowed anymore but that would include golfing, strip clubs, dinners or anything else you might do to shmooze customers. Currently you only get 50% of these costs.

Individuals aren't allowed a deduction for the purchase of athletic tickets but if they make a contribution to amateur sports organizations then they're considered a charitable deduction. If you get "points" or any kind of priority in your ability to buy tickets based on your donation then that deduction is limited to 80%. The house bill would eliminate that deduction altogether. However, you can give to college athletics with no limitation if you don't receive rights to buy tickets and as far as I know that won't change. So let's say you give 10k to you schools athletic club and you get to pick your seats based on that donation and your satisfied with those seats. If you wanted to donate to say a capital campaign or fund an athletic scholarship endowment, as long as those donations don't increase your standing in the seating priority ranking they are and as far as I can tell still will be fully deductible.

It'll be interesting how schools would respond if this went through. Maybe give more weight to how long you've been giving. I think where there's strong competition for good seats there still will be but it would likely take a chunk out of everyone. I'm not sure if it's included in the senate bill, which is really the one to watch. I doubt the senate will bother taking up the house version.

Do you think this affects us with ODAF?

My wife and I have donated a significant amount (four figures) yearly to ODAF but we've never had enough total deductions overall in our taxes to make it better for us to itemize instead of taking the standard deduction. With the standard deduction being doubled we should be even more locked into taking the standard deduction and making out even better than we have in recent years as well when we do. Bottom line there is that it would not have any impact on our donating to ODU's Old Dominion Athletic Foundation (ODAF).

Another thought here regarding how many tickets may be purchased and if this new tax law will change that ... It has been reported that numerous businesses such as Comcast, Wells Fargo, etc. have already stated that they intend to hand out significant bonuses to their employees once the tax bill is signed into law. Many have also stated that they will be moving their business back into the U. S., hiring more employees, and increasing wages. If any or all of those things happen then it could mean that more people will have the means to purchase tickets to games, or donate to their school, that maybe didn't have the means to do so before.

Below is part of a letter that I just received this morning from WKU's AD.

Quote:As you may be aware, new tax provisions have been passed by the United States Congress and will become law once signed by President Trump. This will eliminate the deductibility of donations required with season ticket purchases through the Hilltopper Athletic Foundation and WKU Athletics beginning January 1, 2018. This includes seat premiums for Hilltopper football and basketball season tickets. There are no current plans to change the structure of the HAF Priority System and seat donation requirements; however, we will continue to evaluate the impact of these changes as this new tax plan evolves.

The Hilltopper Athletic Foundation remains committed to supporting the mission of WKU Athletics and will continue to encourage donors to give according to their own priorities and preferences and on their own schedule. However, with the imminent new tax plan set to take effect, donors may want to take advantage of current qualifying deductions by making contributions for 2018 prior to December 31, 2017.

Neither the Hilltopper Athletic Foundation nor Western Kentucky University recommends specific tax strategies but rather encourages you to consult with your own tax advisors to determine how making a gift prior to year-end may benefit you.

I just paid my 2018 membership dues to HAF (Hilltopper Athletic Foundation) today (12.28.17) so I can still deduct 80% of it from my 2017 taxes.

(12-28-2017 03:54 PM)topper1296 Wrote:  I just paid my 2018 membership dues to HAF (Hilltopper Athletic Foundation) today (12.28.17) so I can still deduct 80% of it from my 2017 taxes.

We paid our 2018 HAF yesterday, taking full advantage

(12-28-2017 03:54 PM)topper1296 Wrote:  I just paid my 2018 membership dues to HAF (Hilltopper Athletic Foundation) today (12.28.17) so I can still deduct 80% of it from my 2017 taxes.

Forgot to add that I also made my annual contribution to academics early. I made a promise to myself several years ago that what ever I donate to athletics, I will donate an equal amount to academics.