Utah Giving Out Cars To Everybody

Wild Turkey

Wild Turkey

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Wild Turkey said:
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Utah NIL Collective Goes Into Overdrive For Athletes With Vehicles For Gymnastics, Basketball Teams

Utah is once again setting the standard when it comes to group NIL deals for teams on campus in Salt Lake City.
www.outkick.com www.outkick.com

In a monumental moment for the Utah men’s and women’s basketball teams, along with gymnastic squad, each member was awarded a 2024 vehicle. The announcement was made Tuesday, to the surprise of each player, with vehicles waiting for them on the court.

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Now they can pay TAXES on it!!! :heh:
 
CorpRebel said:
Now they can pay TAXES on it!!! :heh:
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On 50K even at 15% that's $7,500 plus another 5% for state taxes so add $2,500 for a cool 10K that none of them will see coming.
 
"Each student-athlete will pick from a 2024 Jeep Grand Cherokee L Limited Edition or a 2024 Dodge Ram 1500 Big Horn truck"

"the lease and insurance paid for by the collective."

Nice vehicles

The athletes only have to pay the taxes.
 
Red_Alert said:
"Each student-athlete will pick from a 2024 Jeep Grand Cherokee L Limited Edition or a 2024 Dodge Ram 1500 Big Horn truck"

"the lease and insurance paid for by the collective."

Nice vehicles

The athletes only have to pay the taxes.
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is there taxes though? they aren't given the vehicles. it seems they are being leased and given to the students to drive. probably lose the car once they leave school
 
huskers1217 said:
is there taxes though? they aren't given the vehicles. it seems they are being leased and given to the students to drive. probably lose the car once they leave school
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It depends what state you're in.

In Nebraska I don't think you have to pay sales tax unless you purchase the vehicle when the lease expires.

There are local taxes to license and register the vehicle though.
 
Wild Turkey said:
www.outkick.com

Utah NIL Collective Goes Into Overdrive For Athletes With Vehicles For Gymnastics, Basketball Teams

Utah is once again setting the standard when it comes to group NIL deals for teams on campus in Salt Lake City.
www.outkick.com www.outkick.com

In a monumental moment for the Utah men’s and women’s basketball teams, along with gymnastic squad, each member was awarded a 2024 vehicle. The announcement was made Tuesday, to the surprise of each player, with vehicles waiting for them on the court.

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Click to expand...
And the tax man cometh!
 
Red_Alert said:
It depends what state you're in.

In Nebraska I don't think you have to pay sales tax unless you purchase the vehicle when the lease expires.

There are local taxes to license and register the vehicle though.
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I think the lease payment and extras would be considered taxable income.
 
What if they'd rather have the money so they can go get a nice sensible used Envoy and have some left over?
 
Red_Alert said:
Are they considered gifts?

The gift tax applies to anything over $17,000/year.
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No this is comp and no way around that. They are getting paid for their NIL because "gifts" would be against NCAA rules and all of them would be ineligible. They have to pick it up as income.
 
So
Sports that generate ZERO revenue get free cars/

Excuse Me What GIF by Bounce
 
So I looked up the lease price for a 2024 Dodge Ram 1500 'Bighorn' locally and it's $349/month.

Therefore, annual taxable income would be on $4188

If you make less than $10,275 per year, your federal tax rate is 10% or $418/year.

If you make under $41,775 per year, your federal tax rate would be 12% or $502/year.
 
Wild Turkey said:
No this is comp and no way around that. They are getting paid for their NIL because "gifts" would be against NCAA rules and all of them would be ineligible. They have to pick it up as income.
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And I think the way around that is giving people leases. I don't think leases are taxable gifts in the same way as outright giving someone a car to own forever is.
 
MAIZEandBLUE09 said:
And I think the way around that is giving people leases. I don't think leases are taxable gifts in the same way as outright giving someone a car to own forever is.
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You are dead wrong.

The value of the lease is taxable to the recipient as it is compensation. So if the lease payments were $400 a month they would be on the hook for $4,800 in income. However, you have to also figure in if there is a down payment so if the terms are $3,000 down and $400 a month then they would pay $7,800 for this tax year (yes they fucked them doing this in Dec if they had waited they would have had 18 months until they had to pay the cash).

I'll go a step further for you. If you have a company car that you use for company business but are allowed to take that car home at night then by law you are supposed to figure out the mileage between your house and work and claim that as income on your W2.

IRS doesn't play when it comes to vehicles and it is the first question they ask if they audit you 'who has company cars?" because nobody does it right and it's low-hanging fruit. The collectives will have to issue 1099s to the athletes and they will have to pay both income and self-employment tax at 15% on the money.
 
Wild Turkey said:
You are dead wrong.

The value of the lease is taxable to the recipient as it is compensation. So if the lease payments were $400 a month they would be on the hook for $4,800 in income. However, you have to also figure in if there is a down payment so if the terms are $3,000 down and $400 a month then they would pay $7,800 for this tax year (yes they fucked them doing this in Dec if they had waited they would have had 18 months until they had to pay the cash).

I'll go a step further for you. If you have a company car that you use for company business but are allowed to take that car home at night then by law you are supposed to figure out the mileage between your house and work and claim that as income on your W2.

IRS doesn't play when it comes to vehicles and it is the first question they ask if they audit you 'who has company cars?" because nobody does it right and it's low-hanging fruit. The collectives will have to issue 1099s to the athletes and they will have to pay both income and self-employment tax at 15% on the money.
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I spent some time on google,

The IRS prescribes rules for using the “annual lease value” of a car to determine taxable amount. Basically, the “annual lease value” is 25% of the car’s fair market value when you got it, plus $500. So a $50,000 car would have an “annual lease value” of $13,000, and you’d be taxable on that amount each year (or $1083/month for a partial year).

The lease dollar amount that a typical person would pay actually doesn't play into it at all.
 
I swear the football program in Salt Lake City craves attention more than the football program in Boulder does.

I get so sick and tired if hearing about Utah. pfft
 
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