Transfer Portal 2023-2024...

[AlistarWills]

It’s “earned income” - I don’t see how it wouldn’t be taxable.

But if it’s from a collective, and they aren’t anyone’s “employee” I don’t see how it can be considered income.
it’ll all come out sooner or later. April 15th is around the corner.

 

[landonew]

But if it’s from a collective, and they aren’t anyone’s “employee” I don’t see how it can be considered income.
it’ll all come out sooner or later. April 15th is around the corner.

TaxAct filing expert simplifies taxes for college athletes earning NIL income [PAID CONTENT]

TaxAct's tax expert, Jackson Echols, shares tax tips for student-athletes navigating tax season after NCAA policy changes.

www.cbsnews.com

 

[cbi1972]

But if it’s from a collective, and they aren’t anyone’s “employee” I don’t see how it can be considered income.
it’ll all come out sooner or later. April 15th is around the corner.

Income is much more broadly determined than you realize. It is applied to money earned from all kinds of sources, not just wages from a paycheck.

 

[4Q Basket Case]

View attachment 39315

TaxAct filing expert simplifies taxes for college athletes earning NIL income [PAID CONTENT]

TaxAct's tax expert, Jackson Echols, shares tax tips for student-athletes navigating tax season after NCAA policy changes.

www.cbsnews.com

You don’t have to be an employee to receive taxable income. I get dividends. They’re taxable, but I’m not an employee. In fact, I’m a (infinitesimally small) owner.

The booster could try to claim that the payment to the player is a gift of post-tax funds, and it is therefore taxable to neither the giver nor the recipient

If it were an isolated incident, that might have worked a few years ago. It will no longer. Partly because it’s no longer isolated, and partly because…..

The IRS already called stinkin’ hot garbage on aTm’s attempted end run. “The Service” would do the same thing in this variation. And there is zero public sentiment to allow this sort of scam.

Long story short, that dog won’t hunt.

 

[landonew]

Income is much more broadly determined than you realize. It is applied to money earned from all kinds of sources, not just wages from a paycheck.

It’s standard 1099 Income. Depending on the state tax implications, they will pay app. 40%.

You don’t have to be an employee to receive taxable income. I get dividends. They’re taxable, but I’m not an employee. In fact, I’m a (infinitesimally small) owner.

The booster could try to claim that the payment to the player is a gift of post-tax funds, and it is therefore taxable to neither the giver nor the recipient

If it were an isolated incident, that might have worked a few years ago. It will no longer.

The IRS already called stinkin’ hot garbage on aTm’s attempted end run. “The Service” would do the same thing in this variation. And there is zero public sentiment to allow this sort of scam.

Long story short, that dog won’t hunt.

I’m not sure you read the article. It’s states NIL is taxable as ordinary income.

 

[crimsonaudio]

You don’t have to be an employee to receive taxable income. I get dividends. They’re taxable, but I’m not an employee. In fact, I’m a (infinitesimally small) owner.

The booster could try to claim that the payment to the player is a gift of post-tax funds, and it is therefore taxable to neither the giver nor the recipient

If it were an isolated incident, that might have worked a few years ago. It will no longer.

The IRS already called stinkin’ hot garbage on aTm’s attempted end run. “The Service” would do the same thing in this variation. And there is zero public sentiment to allow this sort of scam.

Long story short, that dog won’t hunt.

My accountant once told me that the basic rule of thumb is you owe taxes on any money you get.

Yes, there are some exceptions, but if anyone gives you money for most any reason, you likely owe taxes on it.

 

[PA Tide Fan]

From a purely tax point of view it would make sense for blue-chip athletes to play sports in the states of Florida, Tennessee, Texas or Washington since those are 4 states have schools in a P5 conference and have no state income tax.

 

[landonew]

From a purely tax point of view it would make sense for blue-chip prospects to play sports in the states of Florida, Tennessee, Texas or Washington since those are 4 of 9 states that have schools in a P5 conference and have no state income tax.

It generally benefits the SEC because in some situations, a portion of the NIL income is incurred in the states the games are played. This is all very complicated, apparently.

How state income taxes, LLCs and residency could affect NIL

“I would think the schools in Florida and Texas, for instance, are definitely going to try to use that.”

andywittry.substack.com

 

[PA Tide Fan]

It generally benefits the SEC because in some situations, a portion of the NIL income is incurred in the states the games are played. This is all very complicated, apparently. View attachment 39320

How state income taxes, LLCs and residency could affect NIL

“I would think the schools in Florida and Texas, for instance, are definitely going to try to use that.”

andywittry.substack.com

Interesting. That's good to know because I was concerned all those Texas schools could load up on 5-star players for the foreseeable future looking to save some money on taxes.

 

[landonew]

Interesting. That's good to know because I was concerned all those Texas schools could load up on 5-star players for the foreseeable future looking to save some money on taxes.

Texas and A&M are the only Texas-based programs that can recruit on an NIL level. They’re both SEC starting next year.

So the difference between Alabama and Texas state income tax is 5% and it’s effectively more like 3% since you don’t pay state income tax on federal income tax. I really doubt 5 stars are choosing UT over Bama for 3% NIL margin.

What’s more significant is the institutional NIL fund raising capacity. That’s where I see Alabama at a disadvantage in terms of UT and A&M. That’s a different conversation but it’s significant.

 

[westide]

I never thought I would need to be a tax attorney and a CPA to follow what is going on in college football.

 

[Power Eye]

But if it’s from a collective, and they aren’t anyone’s “employee” I don’t see how it can be considered income.
it’ll all come out sooner or later. April 15th is around the corner.

Oh it’s very much income, and it’s subject to self employment tax since they are not employees. That’s a distinction from professional football players who are employees. However, it also allows for some ability to be “creative” in what can be deducted against that income and how the players can structure the receipt of the income.

 

[BamaMoon]

I never thought I would need to be a tax attorney and a CPA to follow what is going on in college football.

I never thought the transfer portal thread would turn into a tax discussion either!

 

[GrayTide]

Since these students are getting a free ride (scholarships and other paid school related expenses) and getting money from the NIL, I have little concern or sympathy for their potential tax liability at the state or federal level. I suppose the universities will soon start paying the bill for them to have an attorney and CPA. Where does it end?

 

[Padreruf]

Oh it’s very much income, and it’s subject to self employment tax since they are not employees. That’s a distinction from professional football players who are employees. However, it also allows for some ability to be “creative” in what can be deducted against that income and how the players can structure the receipt of the income.

They have to pay income tax and full SS tax...and if given a car they have to pay tax on what it is worth.

Remember TANSTAAFL: "THERE AIN'T NO SUCH THING AS A FREE LUNCH."

Economics 101.

 

[stlimprov]

Since these students are getting a free ride (scholarships and other paid school related expenses) and getting money from the NIL, I have little concern or sympathy for their potential tax liability at the state or federal level. I suppose the universities will soon start paying the bill for them to have an attorney and CPA. Where does it end?

But it's not a free ride. It is abundantly obvious that they provide something which generates value which is fiscally quantifiable.

My kid is not a d1 athlete, but receives considerable "merit based" scholarships to attend college. It's not a gift. They do it because it is in their interest to have people like her feel connected to the institution. Having worked in higher ed for more than a quarter century, I feel extremely confident in saying that someone there could quote you pretty precise fiscal numbers on the ROI that the university is looking at for every dollar of those scholarships. They are choosing to make an investment, and there should be little doubt that someone has run the numbers.

If the universities pay for additional support, they will do so because it benefits the university/program. It is even easier with major sports programs than, say, alumni development, because the realization of the payoff is on a much shorter cycle.

 

[Mke4Bama]

https://twitter.com/i/web/status/1737135939816722637

 

[jjv0004]

https://twitter.com/i/web/status/1737135939816722637

He did not impress at Texas A&M. Hoping Bama can develop him.

 

[jjv0004]

BREAKING: Alabama Crimson Tide lands commitment from Texas A&M DL transfer, former 5-star recruit

Former Texas A&M defensive lineman LT Overton has committed to the Alabama Crimson Tide, via the NCAA Transfer Portal.

www.on3.com

It's official now.

 

[colbysullivan]

Big time pickup