Tax status of NIL?

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goldeagle

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Cannot remember this being covered in previous discussions. Are these benefits taxable to the players receiving them? Anyone got a handle on this topic,surely it has been considered,hasn't it?
 
SHOULD be, but I know that’s gonna be the next complaint from the players association that this is a donated chase and it’s a nonprofit or something stupid like that.
 
CarsonNewmanJacket said:
SHOULD be, but I know that’s gonna be the next complaint from the players association that this is a donated chase and it’s a nonprofit or something stupid like that.
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That's not how non-profits work.
It'll be income. Guaranteed.
 
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daBuzz said:
That's not how non-profits work.
It'll be income. Guaranteed.
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If you had a 501(c)(3) make the NIL donation on behalf of boosters, the donation to the charity would be tax deductible. Then if the charity made a case that it was making a gift under section 102 to the player, it wouldn’t be taxed.

The challenge is that a gift can’t be in exchange for current or future service, and playing football for a certain team would presumably be considered future service, but I’m sure there’s a lawyer somewhere that could make the case.
 
"Racism" will cause the IRS to declare non-taxable, or at least look the other way.
 
gtphd said:
If you had a 501(c)(3) make the NIL donation on behalf of boosters, the donation to the charity would be tax deductible. Then if the charity made a case that it was making a gift under section 102 to the player, it wouldn’t be taxed.

The challenge is that a gift can’t be in exchange for current or future service, and playing football for a certain team would presumably be considered future service, but I’m sure there’s a lawyer somewhere that could make the case.
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Uh huh. PLEASE go try that crap with the IRS and let me know how it works out for you when Bryce Young gets $1 million before he ever steps on the field at Bama through an NIL deal and pays $0 in taxes. Good luck with that strategy.
 
daBuzz said:
Uh huh. PLEASE go try that crap with the IRS and let me know how it works out for you when Bryce Young gets $1 million before he ever steps on the field at Bama through an NIL deal and pays $0 in taxes. Good luck with that strategy.
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I'm reminded of the Steve Martin routine on how not to pay taxes on $1 million dollars!
 
Will any of these poor souls be in trouble with the IRS in several years when it turns out the did know you had to pay taxes. They are part of the generation that thinks everyting is free and someone else pays for it all. It could happen.
 
Gobees said:
"Racism" will cause the IRS to declare non-taxable, or at least look the other way.
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Does your response mean that you don’t think any white players will receive NIL payments or did you just want to be controversial.
 
gtphd said:
The challenge is that a gift can’t be in exchange for current or future service, and playing football for a certain team would presumably be considered future service, but I’m sure there’s a lawyer somewhere that could make the case.
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That would certainly be a challenge since NIL deals are only allowed if they are for the fair market value of the service or product being provided.
 
Nehru Jacket said:
Does your response mean that you don’t think any white players will receive NIL payments or did you just want to be controversial.
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It means that in today's reality, if even one POS "POC" cries foul/racism/discrimination/unfair/oppression, etc., etc., then the System stops and bows in their presence. Truth be damned.
 
daBuzz said:
Uh huh. PLEASE go try that crap with the IRS and let me know how it works out for you when Bryce Young gets $1 million before he ever steps on the field at Bama through an NIL deal and pays $0 in taxes. Good luck with that strategy.
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I would start off by declaring Alabama football a religion.
 
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