dreamlander
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New tax bill includes 21% excise tax on coaching salaries in excess of $1 million.
"Nonprofits, including colleges, will have to pay a 21 percent excise tax on annual salaries above $1 million, if those salaries belong to any of the organization’s five most highest-paid employees." Link
(This post was last modified: 12-21-2017 12:13 PM by dreamlander.)
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12-21-2017 12:08 PM |
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bit_9
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RE: New tax bill includes 21% excise tax on coaching salaries in excess of $1 million.
They'll just give them money in other ways.
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12-21-2017 12:17 PM |
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Attackcoog
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RE: New tax bill includes 21% excise tax on coaching salaries in excess of $1 million.
Yeah...I never heard about that until yesterday.
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12-21-2017 12:56 PM |
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ken d
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RE: New tax bill includes 21% excise tax on coaching salaries in excess of $1 million.
The simple fix is to just let the shoe companies pay the amount over $1 million and reduce their payments to the school by the same amount. They can keep their payments to recruits at their current level.
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12-21-2017 03:24 PM |
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MWC Tex
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RE: New tax bill includes 21% excise tax on coaching salaries in excess of $1 million.
(12-21-2017 12:17 PM)bit_9 Wrote: They'll just give them money in other ways.
Like actually becoming the for-profit colleges they really are?
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12-21-2017 03:36 PM |
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Hokie Mark
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RE: New tax bill includes 21% excise tax on coaching salaries in excess of $1 million.
(12-21-2017 03:24 PM)ken d Wrote: The simple fix is to just let the shoe companies pay the amount over $1 million and reduce their payments to the school by the same amount. They can keep their payments to recruits at their current level.
What's the tax rate on those payments?
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12-21-2017 03:47 PM |
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The Cutter of Bish
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RE: New tax bill includes 21% excise tax on coaching salaries in excess of $1 million.
(12-21-2017 03:36 PM)MWC Tex Wrote: (12-21-2017 12:17 PM)bit_9 Wrote: They'll just give them money in other ways.
Like actually becoming the for-profit colleges they really are?
Schools usually have multiple ledgers, housing funding sources in different areas, like foundations, trusts, and other storage bin entities "independent" of the school (yeah right).
It's in the governance of it all where it makes you sick. Going after a straight salary line is just treating a symptom. Regulate how non-profit entities are governed and chartered with respect to their funding and affiliations and you can actually attack a root cause.
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12-21-2017 04:33 PM |
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Captain Bearcat
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RE: New tax bill includes 21% excise tax on coaching salaries in excess of $1 million.
(12-21-2017 03:47 PM)Hokie Mark Wrote: (12-21-2017 03:24 PM)ken d Wrote: The simple fix is to just let the shoe companies pay the amount over $1 million and reduce their payments to the school by the same amount. They can keep their payments to recruits at their current level.
What's the tax rate on those payments?
Well the shoe company can't report it as an expense, can they? (I honestly don't know). If they can't, then I would think they shoe company still pays the corporate tax rate on that money because it's counted as a profit.
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12-21-2017 06:49 PM |
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ken d
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RE: New tax bill includes 21% excise tax on coaching salaries in excess of $1 million.
(12-21-2017 06:49 PM)Captain Bearcat Wrote: (12-21-2017 03:47 PM)Hokie Mark Wrote: (12-21-2017 03:24 PM)ken d Wrote: The simple fix is to just let the shoe companies pay the amount over $1 million and reduce their payments to the school by the same amount. They can keep their payments to recruits at their current level.
What's the tax rate on those payments?
Well the shoe company can't report it as an expense, can they? (I honestly don't know). If they can't, then I would think they shoe company still pays the corporate tax rate on that money because it's counted as a profit.
While I was being facetious, the reality is that if a shoe company gives money to a recruit, then that certainly should be reported as a business expense and deducted from their gross income. The problem arises when they must also report the payments to the individuals as miscellaneous income on Form 1099. The recruit, or whatever surrogate the money was actually paid to, must then report that amount as income on his personal return. If they fail to report that income, they are guilty of income tax evasion - a felony - and can be prosecuted.
If neither the shoe company nor the player/family member report the payments to the IRS, then I would guess that both are liable for conspiracy to evade income taxes.
In the absence of a subpoena, the IRS has no obligation to report to the NCAA that a payment has been made that violates NCAA rules, and they should not do so. The payments themselves break no federal laws I'm aware of - just NCAA rules. If agents (or "financial advisors") are involved, there may be state laws that apply.
(This post was last modified: 12-21-2017 10:13 PM by ken d.)
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12-21-2017 10:12 PM |
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Renandpat
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RE: New tax bill includes 21% excise tax on coaching salaries in excess of $1 million.
The excise tax is for essentially all not for profit organizations, not just college athletics. There is still a tax exemption for medical faculty at academic hospitals.
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12-21-2017 10:29 PM |
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