Ticket Donation Email

[Carl Spackler]

The email states what I expected MU to do with the new tax law.  They will still require the donation to buy tickets, but either you get (1) tax deduction and no points, or (2) points and no deduction.  With the increased standard withholding, will not matter to some, but will likely matter to those in the high dollar seats. 

[Daniel]

The email states what I expected MU to do with the new tax law.  They will still require the donation to buy tickets, but either you get (1) tax deduction and no points, or (2) points and no deduction.  With the increased standard withholding, will not matter to some, but will likely matter to those in the high dollar seats.

For the past years, if you elected to get points from any donations yoz Blue and Gold fund, then only 80% was deductible.  I don't get their emails as they have a hic cup sending to Comcast.net or something.  Are saying zero is deductible now or did they not mention donations?  Thanks

[ChuckyChip]

Under the new tax law, contributions to the Blue & Gold fund that earn points towards priority seating are no longer tax deductible.  That is why there is the option to forgo the points in order to get the deduction.

[Daniel]

Under the new tax law, contributions to the Blue & Gold fund that earn points towards priority seating are no longer tax deductible.  That is why there is the option to forgo the points in order to get the deduction.

Was 80% if you took points. Now they are saying zero percent is deductible?  Yikes. That is not good for donations if true

[mu_hilltopper]

Donations to ALL charitable orgs are going to take a hit, since the standard deduction went to $24k .. roughly, small donors (under, say, $2500) aren't going to care about the deduction any more. 

[Daniel]

Donations to ALL charitable orgs are going to take a hit, since the standard deduction went to $24k .. roughly, small donors (under, say, $2500) aren't going to care about the deduction any more.

This is not good.   If you donated $5000 a year before and took points, $4000 was deductible.   MU should say, if you donate a total of $5000 we will honor points equivalent to your $5000 donation on your first $1000 donation, with agreement to donate the other $4000 later in year.  So points only count on first $1000 (not deductible), but deduct th next $4000.  Some numbers guys should figure this out

[ChuckyChip]

Was 80% if you took points. Now they are saying zero percent is deductible?  Yikes. That is not good for donations if true

"They" meaning Marquette are not saying it, "they" being the IRS are saying it.  Blue & Gold donations, that earn you points for seating, are no longer tax deductible at all.

[Daniel]

"They" meaning Marquette are not saying it, "they" being the IRS are saying it.  Blue & Gold donations, that earn you points for seating, are no longer tax deductible at all.

Thanks for clarification. This will hurt donations for sure. 

[79Warrior]

Thanks for clarification. This will hurt donations for sure.

Pretty sure the donations that matter are not worried about a 24k standard deduction for a couple. They are safely above that number.

[Muhoops85]

Pretty sure the donations that matter are not worried about a 24k standard deduction for a couple. They are safely above that number.

This is where is pays to be "a sweater vest".
Over 70 1/2 ..make the "donation" out of your IRA.
It's an exclusion from income and still gets the job done.

[GGGG]

This is where is pays to be "a sweater vest".
Over 70 1/2 ..make the "donation" out of your IRA.
It's an exclusion from income and still gets the job done.

You sure about that?  I thought the distribution from IRAs had to qualify as a contribution even though you can't deduct it.

[Muhoops85]

Natalie choate who is most likely the foremost Ira expert recently said it's still good at this point

[79Warrior]

You sure about that?  I thought the distribution from IRAs had to qualify as a contribution even though you can't deduct it.

He is right. You can make a donation from your IRA that counts toward your  RMD and you do not have to pay tax on the distribution. It's a great vehicle.

[Newsdreams]

He is right. You can make a donation from your IRA that counts toward your  RMD and you do not have to pay tax on the distribution. It's a great vehicle.

But if you are getting nice returns on your IRA wouldn't it be a bad deal?

[Benny B]

But if you are getting nice returns on your IRA wouldn't it be a bad deal?

At 70.5 you have to take distributions anyway.

[GGGG]

He is right. You can make a donation from your IRA that counts toward your  RMD and you do not have to pay tax on the distribution. It's a great vehicle.

I understand that, but I don't see how you can use it for points.  Here is what the IRS publication says:

"A qualified charitable distribution (QCD) is generally a nontaxable distribution made directly by the trustee of your IRA (other than a SEP or SIMPLE IRA) to an organization eligible to receive tax deductible contributions. You must be at least age 701/2 when the distribution was made. Also, you must have the same type of acknowledgment of your contribution that you would need to claim a deduction for a charitable contribution."

https://www.irs.gov/pub/irs-pdf/p590b.pdf

How can you have the same type of acknowledgement for your contribution that you would need to claim a charitable contribution when deductions to claim points are no longer charitable?

Maybe I am misunderstanding something? 

[Benny B]

I understand that, but I don't see how you can use it for points.  Here is what the IRS publication says:

"A qualified charitable distribution (QCD) is generally a nontaxable distribution made directly by the trustee of your IRA (other than a SEP or SIMPLE IRA) to an organization eligible to receive tax deductible contributions. You must be at least age 701/2 when the distribution was made. Also, you must have the same type of acknowledgment of your contribution that you would need to claim a deduction for a charitable contribution."

https://www.irs.gov/pub/irs-pdf/p590b.pdf

How can you have the same type of acknowledgement for your contribution that you would need to claim a charitable contribution when deductions to claim points are no longer charitable?

Maybe I am misunderstanding something?

It's still a charitable donation by definition (a donation to a charity), you simply cannot take a tax deduction for it.

Some types of charitable donations are excluded from deductibility.  Silent auctions, dinners, etc.  and now, priority points.

A non-taxable distribution from an IRA is exactly that... non-taxable.  Short answer, the taxable determination is made at the point of distribution, not at the point of receipt.   Watch for that loophole to be closed shortly.

[79Warrior]

It's still a charitable donation by definition (a donation to a charity), you simply cannot take a tax deduction for it.

Some types of charitable donations are excluded from deductibility.  Silent auctions, dinners, etc.  and now, priority points.

A non-taxable distribution from an IRA is exactly that... non-taxable.  Short answer, the taxable determination is made at the point of distribution, not at the point of receipt.   Watch for that loophole to be closed shortly.

That was a temporary loophole that was actually made permanent a year or so ago.

[Marqevans]

Too bad it has to be by someone over 70 and a half.