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New Tax Code - donations and ticket sales

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COUGinNCW

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Oct 5, 2010
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It's early but I have to think the new tax code won't be great for college sports. With fewer people itemizing will this have a bearing on individual donors/season ticket holders?

I also just learned that entertainment will no longer be a deductible business expense (sports tickets, rounds of golf etc.). Will corporations stop buying tickets or just plug their nose and continue to purchase them at what is essentially a 20% increase?
 
It's a big concern for many AD's, as well as Country Clubs, and other membership clubs. If you were a in 33% tax bracket, the charitable donation of $2500 to the CAF, got you a $825 reduction in your tax bill, no deduction next year. It is my understanding that donations to the University's Academic programs and other non athletic areas are still deductible. So I would imagine, there is a creative solution in their somewhere, the Universities that figure it out may benefit as a whole, time will tell.
 
I'm just going to reference this response in the light of giving towards WSU, not some Country Club.

I'm no tax "guy" but hasn't the standard deduction increased and that's what has affected the itemized? So for corporations, I just don't see this being an issue. They'll shell it out because it's business. It isn't about the tax break (although that's nice), it's about showing potential clients good times so they'll become clients. Or insuring clients remain clients. Maybe some smaller business's that are already on the line of affording such things will bow out due to this but that will be minimal.

Regarding individuals, I'm sure it will impact some but so many people are doing this kind of stuff because they want to support their school. The tax break is a fringe benefit, I think. Will there be those that are doing it strictly for tax breaks? Sure, but how many? I'd say it's a smaller percentage.

Bottom line: I do think it will impact things overall. It has to. but how much, is the question. I think minimally.
 
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Cougin, your info is correct.

And if you live in a state with income tax, like CA, the impact is greater now that your state income tax does not come off the federal bill. Sort of a magnify/amplify situation.

Pretty much everybody who relies on donations and/or the ability to write off money as entertainment is sensitive to this. That cuts a very broad swath, from religious groups to sports groups to clubs to charities. Lots of concerned organizations here. The whole "second home" & "vacation home" industry is in a similar boat with the $10,000 interest deduction cap. That doesn't go far where homes are expensive.

In California this is just one more argument for reducing our dependence upon state income tax for funding and going back to things like property tax. That makes it harder to "soak the rich", though, so in a state with only one political party it is a tough sell. Every time the economy hits a speed bump and incomes fall, the state suffers a dramatic loss of income due to our income tax dependency. We hear some small amount of political will then. But otherwise, it is pretty much a non-starter here.

Most businesses that actually make a profit benefitted from the C Corp tax reduction or pass through (S Corp, LLC, partnership, sole proprietorship) 20% pass through reduction. Of course, a company that is not profitable did not benefit, but every other company did. At my company we view that as a trade off against having entertainment expenses get the axe. We don't plan to change our spending for entertainment. If it made sense as an expenditure before, it makes sense now. The case for individuals is different, and I think that is where you will see the loss of the charity & business entertainment subsidies biting WSU and others.
 
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Coug95man2 said:
I'm just going to reference this response in the light of giving towards WSU, not some Country Club.

I'm no tax "guy" but hasn't the standard deduction increased and that's what has affected the itemized? So for corporations, I just don't see this being an issue. They'll shell it out because it's business. It isn't about the tax break (although that's nice), it's about showing potential clients good times so they'll become clients. Or insuring clients remain clients. Maybe some smaller business's that are already on the line of affording such things will bow out due to this but that will be minimal.

Regarding individuals, I'm sure it will impact some but so many people are doing this kind of stuff because they want to support their school. The tax break is a fringe benefit, I think. Will there be those that are doing it strictly for tax breaks? Sure, but how many? I'd say it's a smaller percentage.

Bottom line: I do think it will impact things overall. It has to. but how much, is the question. I think minimally.
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Oh it will impact things allright, but hopefully not much too more than "minimally". The deep cuts in the corporate tax rates will help offset the effect there.

And yes doubling the standard deduction is the biggest impact on the ability to itemize. Not the only impact, but the single biggest. Of course, bye bye personal exemptions. Although my secretary got an additional $1.50 in her paycheck, now she can donate more to the Cougs!
Sincerely, Paul Ryan
 
Loyal Coug said:
Oh it will impact things allright, but hopefully not much too more than "minimally". The deep cuts in the corporate tax rates will help offset the effect there.

And yes doubling the standard deduction is the biggest impact on the ability to itemize. Not the only impact, but the single biggest. Of course, bye bye personal exemptions. Although my secretary got an additional $1.50 in her paycheck, now she can donate more to the Cougs!
Sincerely, Paul Ryan
Click to expand...
Dude. Easy up.
 
I suppose a legion of CPAs will noodle this out for us, but I wonder about the impact this will have on employers that have matching programs.
 
Coug95man2 said:
Dude. Easy up.
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Heh. Dang it I see that Scott has been busy deleting all of our political posts. Wet blanket. He needs to create an uncensored board for us. :confused:

In reference to the now deleted exchange, I am not a democrat. I voted for McCain for example. I am an independent, socially moderate, fiscal conservative.

I will refrain from any more political and/or Trump comments for now, but as for our friend "little" Paul Ryan, his ill-advised and completely out of touch $1.50 tweet will live on until at least November. I just can't believe that anyone would be dumb enough to say, let alone tweet, such a thing. I had some respect for him previously, but that has gone out the window. Conversely, my check went up $150, so I'm loving the additional debt that my grandchildren are saddled with as a result.
 
COUGinNCW said:
It's early but I have to think the new tax code won't be great for college sports. With fewer people itemizing will this have a bearing on individual donors/season ticket holders?

I also just learned that entertainment will no longer be a deductible business expense (sports tickets, rounds of golf etc.). Will corporations stop buying tickets or just plug their nose and continue to purchase them at what is essentially a 20% increase?
Click to expand...
For individuals, there will be less economic incentive to donate. Far less of us will itemize, due to the increased standard deduction, and our tax brackets didn’t change enough to offset that. However, how many people donate only because of the tax deduction?

I’m less familiar with the corporate tax deductions, but the corporate rate got a deep cut (and didn’t eliminate loopholes) so most will end up with big tax savings. The question is whether they’ll decide to put that money into donations or if it’ll go to bonuses.
 
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95coug said:
However, how many people donate only because of the tax deduction?
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For my part, I don't consider the tax deduction other than to think "Ohh! I get to deduct that!" None of my charitable giving in the upcoming years will be affected by the inability to deduct them (though even under the new law, we will still itemize). And frankly, none of the people I know choose when to donate based on the ability to deduct. In my circle of friends, this is a non-issue and won't affect me or my friend's donations to CAF.
 
Suudy, I tend to think you are right for the most part in terms of the question of whether to contribute or not. A big change in the tax situation could, however, influence the amount given, particularly for those in higher tax brackets who wanted to give, say $100k and now give a lower amount that, with the changed tax effect, will add up to $100k. It would make a big net difference to the charity.
 
Suudy said:
For my part, I don't consider the tax deduction other than to think "Ohh! I get to deduct that!" None of my charitable giving in the upcoming years will be affected by the inability to deduct them (though even under the new law, we will still itemize). And frankly, none of the people I know choose when to donate based on the ability to deduct. In my circle of friends, this is a non-issue and won't affect me or my friend's donations to CAF.
Click to expand...

So, how about ponying up $10/month to Wazzuwatch? Just sayin'.........:rolleyes:
 
Suudy said:
For my part, I don't consider the tax deduction other than to think "Ohh! I get to deduct that!" None of my charitable giving in the upcoming years will be affected by the inability to deduct them (though even under the new law, we will still itemize). And frankly, none of the people I know choose when to donate based on the ability to deduct. In my circle of friends, this is a non-issue and won't affect me or my friend's donations to CAF.
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Agree. If one gives 2k to the school and gets to write off $600, for example, you're still out $1400. I am no accountant but this doesn't sound like a profitable business venture to me and I cannot imagine anyone who thinks it is. People donate because they wish to support the school not because it makes financial sense. A deduction for charitable contributions lightens the burden but is only a minor fringe benefit of the giving.
 
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