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Taxes 1099's for Underwood deal
Posted on 11/22/24 at 4:25 pm
Posted on 11/22/24 at 4:25 pm
So how do taxes work in this case? I understand when LSU kids do commercials for a law firm then in January they're almost certainly being mailed a 1099. But in Underwood's case it's being reported that it's more like a network of high networth individual Michigan boosters collectively putting money into a slush fund for Underwood, almost like the old SMU days in the early 80's. So if there's no corporation front man like a Gordon Law Office or a Raising Canes, then is Underwood just on the self reporting honor system with the IRS? Something doesn't add up with the Wild Wild West of NIL especially now that we're talking 8 figures.
This post was edited on 11/22/24 at 4:32 pm
8
Posted on 11/22/24 at 4:27 pm to FizzyPop
Absolutely rediculous that Todd Graves didn’t out bid Michigan for us
This post was edited on 11/22/24 at 4:28 pm
Posted on 11/22/24 at 4:29 pm to FizzyPop
Hope it's taxed so much they end up with just $100.
Posted on 11/22/24 at 4:32 pm to Pelican fan99
quote:
rediculous
Eye roll
Posted on 11/22/24 at 4:37 pm to Pelican fan99
quote:
rediculous
Better than bluediculous amirite?
Posted on 11/23/24 at 10:03 am to FizzyPop
I'm sure it will be distributed to him after performing "duties" such as appearances or autograph signings.
I'd be shocked if they didn't have lawyers involved to at least give it the appearance of earned income.
I'd be shocked if they didn't have lawyers involved to at least give it the appearance of earned income.
Posted on 11/23/24 at 10:27 am to FizzyPop
One thing you need to learn is that the government always gets their money. Always.
I am sure they have the tax situation worked out.
I am sure they have the tax situation worked out.
Posted on 11/23/24 at 10:34 am to FizzyPop
The donor side of the transaction has to report the expense. Most likely a business expense. That forces the party receiving the funds to report it on theirs taxes. Don’t know if the players are setting up LLCs or something like that but the tax man will get paid.
Posted on 11/23/24 at 10:35 am to FizzyPop
Do you believe that 10+ million will deposited in his checking account in one lump sum?
On a side note any kid that gets an NIL should have to pay taxes on their scholarship awarded tobthem, IMO.
On a side note any kid that gets an NIL should have to pay taxes on their scholarship awarded tobthem, IMO.
Posted on 11/23/24 at 10:42 am to La Place Mike
quote:
On a side note any kid that gets an NIL should have to pay taxes on their scholarship awarded tobthem, IMO.
Why? You do realize that schools paying the scholarships will pay anywhere between $30k-$70k every year after book/housing/meal plans, and then go want to pass that onto the student?
I truly don't get the frustration. We were never going to get Underwood unless we went undefeated. The money and distance to home are a bigger draw at this point.
Posted on 11/23/24 at 10:45 am to Pelican fan99
quote:
Absolutely rediculous that Todd Graves didn’t out bid Michigan for us
Todd Graves has about 1/300th of the net worth of Ellison.
Posted on 11/23/24 at 11:58 am to BilbeauTBaggins
quote:
Why?
Because they're now professional athletes.
quote:
You do realize that schools paying the scholarships will pay anywhere between $30k-$70k every year after book/housing/meal plans, and then go want to pass that onto the student?
Yeah. What's your point?
quote:
I truly don't get the frustration. We were never going to get Underwood unless we went undefeated. The money and distance to home are a bigger draw at this point.
My opinion has nothing to with Underwood. I don't blame the kid for taking the money. My opinion would apply to all athletes that get paid to play college sports. Scholarships should go to the amateurs.
Posted on 11/23/24 at 12:03 pm to FizzyPop
You guys overcomplicate things. Whatever he receives will be reported as income. He’ll pay taxes on it or won’t and get in trouble with the IRS. It’s not that complicated
Posted on 11/23/24 at 12:07 pm to Pelican fan99
quote:
Absolutely rediculous that Todd Graves didn’t out bid Michigan for us
Why should he?
Posted on 11/23/24 at 12:08 pm to BilbeauTBaggins
quote:
On a side note any kid that gets an NIL should have to pay taxes on their scholarship awarded tobthem, IMO.
scholarships for room and board and incidental expenses may be taxable by the IRS.
Posted on 11/23/24 at 12:20 pm to Sterling Archer
quote:
. Whatever he receives will be reported as income
Exactly. He can form a dozen LLC’s or trusts, take it in deferred comp or whatever. In the calendar year the money is paid out, it will be taxed as ordinary income.
And assuming the speculated amount of $12M is correct, he will need to defer it over ~30 yrs (which makes no financial sense) or he will be calling his accountant and asking where the hell 37% of his money went. And make that 41.5% after the state of Michigan is done with him.
This post was edited on 11/23/24 at 1:12 pm
Posted on 11/23/24 at 12:46 pm to Basura Blanco
I’d imagine sports agents are involved as well. Those guys usually get 5-10%, right?
Posted on 11/23/24 at 12:58 pm to Basura Blanco
quote:
need to defer it over ~30 yrs
What
Investing lump sum now over 30 years will far exceed whatever nonsense you just posted
Posted on 11/23/24 at 1:03 pm to FizzyPop
Regardless of a 1099 as the kids have probably set up a S corp, partnership or some other llc type, these payments are taxable and will recievea high audit rate
Posted on 11/23/24 at 1:09 pm to Basura Blanco
quote:
And assuming the speculated amount of $12M is correct, he will need to defer it over ~30 yrs (which makes on financial sense) or he will be calling his accountant and asking where the hell 37% of his money went. And make that 41.5% after the state of Michigan is done with him.
That would still be $400k in annual income. He's paying max tax rate on that still. At least if he took it up front he could invest it to recoup some of the tax losses.
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