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NCAA- Supreme Court ruling

Cyched said:
Even with all the hype it's getting?
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Stripping a university of their 501 c designation is going chap some very powerful people and businesses who are quite used to the tax deductions for their donations. Now the athletes will pay taxes on any money they earn, just like any other employee, but universities aren't losing their tax exempt status any time soon. And the people who think they are, are deluding themselves.
 
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Mr Janny said:
Your argument seems to be "While amateur athletics are not a limiting criteria for University tax exempt status now, some people might get mad enough that they might rewrite the tax code sometime in the future.... maybe"

Do I have that about right?

I'm not sure post 86 is quite the 'gotcha' you think it is.
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Post 86 is not intended to be a gotcha. As it states, the potential scenario of having W-2 athletes raises the possibility of changes to the tax exempt status of Universities.
 
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cykadelic2 said:
Post 86 is not intended to be a gotcha. As it states, the potential scenario of having W-2 athletes raises the possibility of changes to the tax exempt status of Universities.
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And if your grandmother had wheels, she'd be a fire engine.
You can posit all kinds of what if scenarios. It doesn't mean any of them are realistic.
 
Mr Janny said:
And if your grandmother had wheels, she'd be a fire engine.
You can posit all kinds of what if scenarios. It doesn't mean any of them are realistic.
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Posting that kids would be getting paid to play sports representing an institute of higher learning was a grandmother and fire engine scenario not too long ago.
 
cykadelic2 said:
Typical response from a CF Staffer.
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I agree. CF staff are a wise and logical folk, with little time for whimsy and tales of fantasy, such as yours.

Look, I get that you have strong feelings about this. Clearly I do too. I apologize for being flippant. I just don't think it's likely that this is going to change existing tax laws. Not for a long time anyway.

And even if it did, I don't see that as the worst thing in the world. Maybe these massive athletic departments should be paying taxes. I'm not opposed to that. I don't think it will happen, but I'm not opposed to it.
 
People act like tax exempt organizations don't have paid employees. Newsflash, they do. The Iowa State AD pays wages to tons of staff, including employee students. Why would adding players to that change it in any way? Answer: it wouldn't.
 
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cykadelic2 said:
Post 86 is not intended to be a gotcha. As it states, the potential scenario of having W-2 athletes raises the possibility of changes to the tax exempt status of Universities.
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This is not going to happen. Many foundations (corporate, individual, fund, as well as University) are set up so they can only donate to tax exempt entities. This protects them from paying taxes on their earnings as well as their donor's earnings (tax deductible donations) . Do you think that the IRS or congress will wipe out funding that supports University research that is often the only non-government funding available for Institutional Research. Wonder what our ag department gets from the Monsanto Foundation, or Deere Foundation. I am sure the ISU Foundation has numbers to show NGO foundation support.

I have a small foundation set up, and my tax advisor and attorney tell me what I can donate to, often I have to pass on some worthy causes, because they haven't established 501c3 status, but it protects the earnings of the foundation from taxation. This allows my donations to eligible entities to be larger. It cannot donate to ISU athletics, but can to the ISU foundation. It was set up to honor both my wife's and my parents, and control will pass to my heirs in the future. Any additions to its principle by my wife or I is tax deductible as well as its own earnings, although we are both retired. That said, I can donate out of other funds to some causes ( out of pocket), but I pay taxes on that money!
Edit: Once I put money in it, it is no longer my money, it belongs to the foundation and you have to be a 501(c) to have it, which I am not. :D

I tried to set it up to provide me beer money, but the IRS does not consider that an educational activity!!!!!!:jimlad: nor does my wife :oops:
 
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cykadelic2 said:
Post 86 is not intended to be a gotcha. As it states, the potential scenario of having W-2 athletes raises the possibility of changes to the tax exempt status of Universities.
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It really doesn’t though. I just completely disagree with that. Schools would drop sports completely before they gave up tax exemption.
 
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BryceC said:
It really doesn’t though. I just completely disagree with that. Schools would drop sports completely before they gave up tax exemption.
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Why? They can just raise prices (ie tuition) to cover the taxes on their regular operations. Corporations don't pay taxes, folks, consumers do (at least most of the tax, in most industries). With education, and banks/government providing the cash... you'd see tuition go up 20% overnight and demand would barely drop at all because "someone else" is paying for most of that.

Alternately, they could spin off the AD as a taxable entity and leave EduOps as tax-exempt. That's even easier.
 
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Clark said:
they'd have the same rules regarding the taxability of scholarships as any other student and the same rules they have now.

Also, be careful with the tax deduction for athletic department donations. If you donated the money as a requirement to be able to purchase tickets, that isn't deductible at all anymore.
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True, but it's likely not something the IRS is even going to mess with looking at unless your charitable donations is a really high amount.
 
theshadow said:
Well, it's a good thing that circumstances and laws never change.
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Things might change. I have yet to here a convincing argument why players getting payed like any other athletic department employee, including student employees, would change anything.
 
isufbcurt said:
Is it true Jorbo licensed this song for his pod cast intro?

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cykadelic2 said:
Post 86 is not intended to be a gotcha. As it states, the potential scenario of having W-2 athletes raises the possibility of changes to the tax exempt status of Universities.
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Can't they just make it so that NIL income is not from the university but from individual companies and this whole hand wringing over tax exempt status flies out the window?
 
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