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Tax Reform & Season Ticket "Donations"

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  • Tax Reform & Season Ticket "Donations"

    This is interesting: The University of MN is encouraging me to renew my season football tickets for next fall in 2017 as it may be the last opportunity to deduct 80% of the mandatory donation for preferred seating. So I'm going to go ahead and get that done before the end of the calendar year.

    Also interesting to me that Bogleheads is banning any talk of tax reform. I mentioned it in a thread on donor advised funds and got a warning. Thank you for having a forum that allows us to discuss the pending legislation. With the end of the year fast approaching, there are actionable items like this one. If the law somehow doesn't pass, I've simply locked in next year's football tickets, which I was going to do, anyway.

    More on the ticket issue here and below from athletic director Mark Coyle:

     

    "In light of recent news that the federal tax reform bill has been passed through both houses of the legislature on its way to potentially becoming law, today we reached out to every fan who has invested in our student-athletes by supporting Scholarship Seating with their Gopher season ticket purchases to outline how one change in the tax code may impact their ability to write-off that contribution.

    One of the many changes this bill will put into effect – should it become law – will remove what was commonly called the “80/20 rule,” which allows taxpayers to write-off 80 percent of charitable contributions attached to event tickets. In our case specifically, this deduction has been available to fans who owned season tickets in Scholarship Seating areas for football, men’s and women’s basketball, men’s hockey and volleyball.

    This change to tax law would mean Scholarship Seating contributions will no longer be 80 percent tax-deductible. Should this become law, you will not be able to write-off any of your Scholarship Seating donations next year."

  • #2
    There are a few minor forum rules at Bogleheads that seem like overkill. That's one of them. But you can see what they're trying to avoid. Not only do tax topics frequently get heated and degenerate into name calling and highly political threads, but they also become confusing when the rules change every day.
    Helping those who wear the white coat get a fair shake on Wall Street since 2011

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    • #3
      .

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      • #4


        “In light of recent news that the federal tax reform bill has been passed through both houses of the legislature on its way to potentially becoming law, today we reached out to every fan who has invested in our student-athletes by supporting Scholarship Seating with their Gopher season ticket purchases to outline how one change in the tax code may impact their ability to write-off that contribution. One of the many changes this bill will put into effect – should it become law – will remove what was commonly called the “80/20 rule,” which allows taxpayers to write-off 80 percent of charitable contributions attached to event tickets. In our case specifically, this deduction has been available to fans who owned season tickets in Scholarship Seating areas for football, men’s and women’s basketball, men’s hockey and volleyball. This change to tax law would mean Scholarship Seating contributions will no longer be 80 percent tax-deductible. Should this become law, you will not be able to write-off any of your Scholarship Seating donations next year.”
        Click to expand...


        Wow, that one flew under the radar, thanks for posting.
        Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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        • #5
          Well we all know that this isn't really a "donation," don't we?  It's just splitting up the cost of your football tickets so you don't feel as bad about paying $500 a game.   :lol:

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          • #6


            Well we all know that this isn’t really a “donation,” don’t we?  It’s just splitting up the cost of your football tickets so you don’t feel as bad about paying $500 a game.
            Click to expand...


            It will be interesting to see how universities handle this in the coming years. If it's not tax-deductible, it's not much of a "donation." Not that it ever was.

            FWIW, my tickets cost $330 apiece plus a $150 "donation." I used to be in seats with a $300 donation each, but they raised the donation in that section to $500, so I downgraded.

            Renewing this calendar year will save me about $120 or so on my 2017 taxes. No deduction in 2018 is looking more likely. The House already passed the bill and it goes to the Senate later today.

            Fortunately, I'll save a lot of money by being in the 24% tax bracket next year, and my blog may need to become a pass-through business in 2018.

            Cheers! And Go Gophers!
            -PoF

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            • #7




              Well we all know that this isn’t really a “donation,” don’t we?  It’s just splitting up the cost of your football tickets so you don’t feel as bad about paying $500 a game.   ?
              Click to expand...


              Yes, it is kind of squirrelly, probably a good tax policy reform to eliminate that. Very creative move on the university's account though.
              Helping those who wear the white coat get a fair shake on Wall Street since 2011

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              • #8
                It will be interesting to see if universities and colleges will need to decrease the amount requested/demanded for these so called "seat-license" donations given that boosters will no longer be able to deduct them.

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                • #9
                  I wrote about this a few weeks ago on my write-up of the initial tax bill.  A friend of mine took it to mean he could write off 80% of any ticket for any college football game.  I let him know that isn't exactly how it worked, however, being an attorney he felt his opinion was correct  

                   

                  Also, I did not know MN had a football program!  Go Bucks! 

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                  • #10


                    Also, I did not know MN had a football program!  Go Bucks!
                    Click to expand...


                    Basketball fan, eh?

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                    • #11
                      USA Today featured this change in an article today, along with a change in the taxation on the million dollar coaches will affect collegiate athletics.

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