NIL to be exempted from state taxes in Alabama?

[Joefus]

Are NIL amounts public info? Like do you have to disclose it? Seems to me unless it’s being reported to the irs anyone with a halfway decent accountant wouldn’t be paying their fair share anyways

 

[B1GTide]

Are NIL amounts public info? Like do you have to disclose it? Seems to me unless it’s being reported to the irs anyone with a halfway decent accountant wouldn’t be paying their fair share anyways

They do not have to disclose it to the public, but the IRS can find it if they spend it or save it.

 

[Cruiser]

Are NIL amounts public info? Like do you have to disclose it? Seems to me unless it’s being reported to the irs anyone with a halfway decent accountant wouldn’t be paying their fair share anyways

Of course it's being reported to IRS; they get a 1099. And; have to pay taxes. Like any private contract; they don't have to make public.

 

[NoNC4Tubs]

Of course it's being reported to IRS; they get a 1099. And; have to pay taxes. Like any private contract; they don't have to make public.

Yep!

Whoever is paying the money will be reporting it for their own benefit...

 

[Cruiser]

Yep!

Whoever is paying the money will be reporting it for their own benefit...

Collective donations are not tax deductible
An advertising/endorsement contract would be a business expense.

 

[NoNC4Tubs]

Collective donations are not tax deductible
An advertising/endorsement contract would be a business expense.

I understand that, but doesn't NIL constitute paying the athlete for the use of his Name, Image & Likeness?

I don't see how it isn't an advertising expense...

Who stated that NIL can't be an advertising expense?

 

[Cruiser]

I understand that, but doesn't NIL constitute paying the athlete for the use of his Name, Image & Likeness?

I don't see how it isn't an advertising expense...

Who stated that NIL can't be an advertising expense?

Courts have ruled donations to collectives are not tax deductible. The donating individual is not receiving a specific benefit from an athlete. They don't know(technically?) how and to who the money will be disbursed. And; it's not a "donation" to the University like a donation to the athletic department which is deductible. That's my understanding.
I am sure people will try to find loopholes to work around it and game the system.

 

[NoNC4Tubs]

Courts have ruled donations to collectives are not tax deductible. The donating individual is not receiving a specific benefit from an athlete. They don't know(technically?) how and to who the money will be disbursed. And; it's not a "donation" to the University like a donation to the athletic department which is deductible. That's my understanding.
I am sure people will try to find loopholes to work around it and game the system.

Maybe the Collectives should start actually featuring the players name, image or likeness in commercials...then it would be advertising and thus a tax deduction.

So the courts are calling the shots for the IRS now...?

 

[Cruiser]

Maybe the Collectives should start actually featuring the players name, image or likeness in commercials...then it would be advertising and thus a tax deduction.

So the courts are calling the shots for the IRS now...?

I believe it was challenged in Texas? Only deductible if the collective is set up as a 501C3 entity. Yea, Alabama, for instance; is not. It's an LLC.

 

[JohnD]

They're all super-geniuses now, didn't you know that? Most of them are finishing high school early to enroll in college in January. Some are even finishing high school a year early! Many of them are graduating from college in 3 years and then earning at least one master's degree before their eligibility is finished. Back when I finished college in the early 90s, everyone was so dumb that it was a struggle to carry a full academic load and graduate in four years, most people needed 5 years, even without playing a sport at a big-time program. I'm excited about the future of this country as more and more of these super geniuses start to enter the workforce and are able to solve the many issues that we moron's have not been able to and probably created.

Good point. When I graduated college we were some kind of dumb! Some were even on the 6 year plan! Perhaps in our lifetime we can look forward to driving in our own flying cars designed by these super geniuses, or something equally impressive!