IRS Says Donations Made to Nonprofit NIL Collectives Are Not Tax Exempt

[OrangeXtreme]

 

[Nick44]

Good.

 

[GoSU96]

You meant deductible, not exempt. NIL is supposed to be an exchange of value, not a charity.

And payouts are taxable as income I would think.

 

[wfschrec]

LOL ... I mean they have to be able to tax the money at least twice. It's taxed before you donate then they take their cut from the athlete ... I mean they can't balance a budget so why does this surprise anyone?

 

[NYCCuse826]

NIL is not charity. It's paid compensation. It would not be tax exempt.

 

[GoSU96]

LOL ... I mean they have to be able to tax the money at least twice. It's taxed before you donate then they take their cut from the athlete ... I mean they can't balance a budget so why does this surprise anyone?

When you pay an electrician or Plumber is it a donation. You’re paying with after tax dollars. And it’s not deductible unless it’s a business expense. And the guy you paid will pay income tax.

it’s no different

 

[wfschrec]

When you pay an electrician or Plumber is it a donation. You’re paying with after tax dollars. And it’s not deductible unless it’s a business expense. And the guy you paid will pay income tax.

it’s no different

Isn't the point of NIL to advertise for businesses? Sounds like a business expense to me ... so no it isn't different. But hey if you enjoy being taxed to death why don't you pay mine too?

 

[GoSU96]

Isn't the point of NIL to advertise for businesses? Sounds like a business expense to me ... so no it isn't different. But hey if you enjoy being taxed to death why don't you pay mine too?

Joe Fan pitching in to a collective is not a business expense

 

[wfschrec]

Joe Fan pitching in to a collective is not a business expense

Depends on the context under which Joe Fan does it ...

 

[upperdeck]

how many NIL groups survive the new IRS rules?

Its pretty clear that many of the NIL created to pay players as non profits are really only there to pay players. And it sounds like many will disolve based on the new NIL rules. NIL or bust

 

[texascpa]

Not a new rule, they just don't meet the requirements of a 503-C. It's just now that the IRS is going to put the hammer down.

 

[AngryOtto]

Not sure the many. Donors were going to give money regardless. The tax break was just an added benefit.

 

[Cuse'91]

Wonder if the whale NIL guys pay individual players through a LLC; issue a 1099, even.