Football Drives Ohio State Revenue CBS/Turner Ratings Up For Elite 8 Games Final Four Secondary Market Prices Lower NCAA Issues Final Warning To N.C. Over HB2 College Hockey Struggling To Grow Despite Talent Glut CBS/Turner Sweet 16 Overnights Up Tickets Tough To Come By For K.C. Regional Pitt Officially Introduces New AD Heather Lyke NCAA Tourney Viewership Hits 24-Year High Minnesota Works To Erase Athletics Debts
ATTORNEY MAKES CASE FOR COLLEGE CONTRIBUTION DEDUCTION
Published August 12, 1999
In his "Tax Report" in the WALL STREET JOURNAL, Tom Herman wrote, "Athletic directors score in a high-stakes tax battle." Herman: "When taxpayers give money to a collegiate athletic program, how much may they deduct as a charitable gift if they receive, in return, rights to purchase skybox seats at athletic events?" The question "is very important to many colleges." After a challenge by an IRS agent, Verner Liipfert attorney Philip Hochberg, representing the Div. I-A Athletic Directors Assoc., argued that an '88 law should allow 80% deductibility of amounts above the value of the tickets and "amenities," such as parking. The IRS later "confirmed the 80% rule." Hochberg called the decision "a critical financial one for major collegiate athletic programs, many of which have installed suites in stadiums and arenas in the past 10 years." Herman wrote that the American Council on Education and the NCAA were "also interested in the issue" (WALL STREET JOURNAL, 8/11).