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Anyone know the TAX of NIL
Posted on 2/3/22 at 8:22 pm
Posted on 2/3/22 at 8:22 pm
Clearly, players are NOT employees.. Are they Contractors? Independent Business people... entripounours? How is the income reported.. from both sides? I assume in the OLDEN days, players did not claim income, and donors hid payments.. NOW .. how is it coded? IS there A 1099? The business can certainly write it off... Man, this is going to be an accounting story in 1.5 years.
13
Posted on 2/3/22 at 8:26 pm to Scatback1
If they are smart, they will set up NIL payments as “gifts” from enough donors to keep the individual donor $$$ amount under $10k year and its tax free.
Player gets 100k year as $5k gifts from 20 boosters. Boom, tax free bitches!
Player gets 100k year as $5k gifts from 20 boosters. Boom, tax free bitches!
Posted on 2/3/22 at 8:33 pm to Scatback1
Gonna be taxable income. If $400-500K paid in a lump sum the first year, they will owe Uncle Sam well over $100k. If paid out over 4 years, they might owe roughly 20-25 % per year. Just seat of the pants estimates. Let's get a over/under bet going on how many of these rocket scientists don't file at all.
Posted on 2/3/22 at 9:33 pm to Scatback1
About tree fitty
Posted on 2/3/22 at 9:34 pm to Scatback1
It's a 1099 just like anyone that gets money from a corporation for use of something.
The only problem is it's not a huge amount of money and some of these families have never had enough money to pay taxes. So it is a problem for some.
The only problem is it's not a huge amount of money and some of these families have never had enough money to pay taxes. So it is a problem for some.
Posted on 2/3/22 at 9:40 pm to Scatback1
It is considered earned income. Due to the tax bracket on some of these amounts it will be between 33-38% tax rate. They will pay IRS
Posted on 2/3/22 at 10:57 pm to Scatback1
They will be taxed as independent contractors receiving 1099s
Posted on 2/4/22 at 8:25 am to Scatback1
The same way pro athletes do taxes on endorsements. I am guessing they are individual contractors and have to do a 1099 but some may have a LLC or something like that.
Posted on 2/4/22 at 8:26 am to Scatback1
Lawyers are setting up corps for the money to go to. So, the smart ones will expense as much as they can against the revenue and then pay corp and personal taxes on the net.
These kids are about to learn more about tax policy in one year than most people learn in a lifetime.
These kids are about to learn more about tax policy in one year than most people learn in a lifetime.
Posted on 2/4/22 at 8:31 am to Scatback1
Taxed as ordinary income.
Posted on 2/4/22 at 10:17 am to Scatback1
I would think a 1099...if not, expect some issues at some point in the future.
Posted on 2/4/22 at 1:48 pm to Scatback1
Also parents can no longer claim any of them.
Posted on 2/4/22 at 3:09 pm to Scatback1
What does this even matter to y’all?
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