Orangefan1
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So far the only fall out was pitino it looks like the rest of these coaches won't be losing their jobs anytime soon
And that's the thing with some of these guys. The illegal stuff is shoe company books and slush funds. The FBI doesn't really give a hoot about players getting a bag or basketball coaches knowing or not knowing about it - that's the NCAA and they sure as heck want to see the status quo preserved. Thus far, they've been pretty quiet on the whole thing. Emmert won't let the house fall on his watch.
Wrong. The $14k (annual exclusion) is a reporting requirement on individual (not coprorate) gifts. It is not a threshold for payment of tax.I think the annual limit for non taxable gifts is $14,000 per person. Anything above that amount is taxable. I suppose they could argue it was $14,000 for each person in the family of the recruit but it really strains credulity.
From the UA President letter:
"Based on the facts that we know at this time, we support Coach Miller and intend to provide him with all of the tools necessary to meet our goals and expectations."
In other words, it's all good til it ain't, then his ass his grass.
http://www.kgun9.com/news/local-news/coach-miller-speaks-following-book-richardson-allegations
We are talking about this case, and a gift does not apply at all. Even gifts to family members have an upper limit for what is non taxable.
Yep. There's a tax (add: to the donor) only if the donor gives more than his/her exclusion (which is over $5m for a lifetime). However, for any gift over $14k (per year, per donee) the donor has to file a 709 (the shoe company). Again, this is an unlikely situation for a basketball kid or his mom taking a bag of money.The Gift Tax
Presumably you already paid taxes on the money you're giving at the time you earned it. If your generosity qualifies as a gift with the IRS, you'll have to pay taxes twice on the amount that exceeds the exclusion: once in income tax, then again for the federal gift tax. The 2012 federal gift tax rate is 35 percent. If you're single, your $37,000 gift will cost you $12,950 in taxes. If you're married and you only exceeded the exclusion by $24,000, you'd owe the IRS $8,400. Gifting money over the exclusion limits requires filing Form 709 with the IRS along with your return.
These were my thoughts exactly. Since they are pretty much self reporting the lack of institutional control, whenever the NCAA gets around to it(10 years from now apparently is the normal time frame!) they should be getting their punishment then.So they're just gonna take the penalties for lack of coach and institutional control? Based on Syracuse example he'll be suspended for a full conference season, loss of 15+ scholarships over a 5 year period and loss of possibly every win he has at AZ. Plus fines.
LOL. Miller and UA will skate on this like they always do.So they're just gonna take the penalties for lack of coach and institutional control? Based on Syracuse example he'll be suspended for a full conference season, loss of 15+ scholarships over a 5 year period and loss of possibly every win he has at AZ. Plus fines.
There is no way ton this green earth this is a gift. Something is a "gift" only if it is made with "deatched generousity". In other words the person making the payment did not want or hope for anything in return. this payment was made with the hoe/expectation that the kid would use the shoe company afterwards. No way it is a gift.Yep. There's a tax only if you give more than the exclusion (which is over $5m for a lifetime). However, for any gift over $14k (per year, per donee) you have to file a 709. Again, this is an unlikely path for a basketball kid or his mom taking a bag of money.
Not sure how this clarifies, are you saying someone receiving 5M owes no tax? I know there is no penalty to the payer up to that amount.I understand that, but people seem to presume that this is a gift and could be taxable to the recipient. I'm trying to clarify the issu. As for the upper limit, it's $5M+ so, not an issue either way.
Not sure how this clarifies, are you saying someone receiving 5M owes no tax? I know there is no penalty to the payer up to that amount.
The FBI/IRS would not be using this against the payer/donor, but rather the payee/receiver, and a gift to a family member from a family member is limited, so not sure exactly what you are saying as it applies to a gift/payment from a corporate entity.
Tax law is complex, but if what you have implied is true it is also ridiculous.
Wrong. The $14k (annual exclusion) is a reporting requirement on individual (not coprorate) gifts. It is not a threshold for payment of tax.
No transfer tax (gift or estate) is payable unless and until you have given away $5.45M during your lifetime, up to and including your death. $10.9M for couples.[/
A gift is taxable to the donor, not the recipient. In rare cases, the IRS can go after the recipient if the donor does not pay the taxes or the recipient declares they would pay the taxes. That is the law. It's a common misconception that if you receive money as a gift, you owe taxes on it. That's not true. My point on gifts was to clarify the misconception that the recipient (the player and the parents) would owe taxes on the $100K IF the IRS deemed the payment a gift from Adidas. I don't believe the IRS would do that, but there was some conjecture from some posters that it might be considered that.
Another way to look at this is through inheritances. Inheritances, by their very nature are gifts. For Federal tax purposes, they are not taxable to the recipient, only the donor's estate. The estate has a current lifetime $5.45M of exclusion on gifts. So, if someone bequeathed an estate of $5M to you, it's plausible that neither they nor you would have to pay tax on it. You can debate the merit of it, but that's the law.
Okay, much more clear, thank you!
Still not sure these payments could be called gifts, but you have cleared up the gift muddle. In this case, hard to believe either donor or recipient paid taxes or declared, because neither wanted a paper trail that could be followed by the NCAA.
Opens the question of what exactly constitutes a gift. I cannot believe these payments could be called gifts because something was expected in return for payments.
It's a lifetime gifting amount for individuals, not corporations. That money has already been taxed when earned.Not sure how this clarifies, are you saying someone receiving 5M owes no tax? I know there is no penalty to the payer up to that amount.
The FBI/IRS would not be using this against the payer/donor, but rather the payee/receiver, and a gift to a family member from a family member is limited, so not sure exactly what you are saying as it applies to a gift/payment from a corporate entity.
Tax law is complex, but if what you have implied is true it is also ridiculous.
No real denials.
Translation:
"I was devastated to learn last week that Book had got hisself pinched. I have expressed to both Dr. Robbins and our Athletic Director Dave Heeke that I am obviously unable to protest efforts to fully investigate these allegations. [I am dismayed to learn that I do not have the authority to fire the investigators.] As the head basketball coach at South by Southwest Cactus Tech, I recognize I am supposed to promote a culture of compliance. To the best of my ability, I have worked to cultivate the illusion that I have been doing so over the past 8 years, and will continue to do so as we move forward."