I just read today that the Big House Suites and Club seats are 80% tax deductible. Are regular season tickets tax deductible as well?
that are necessary to get your season tickets are 80% deductible. The tickets themselves are not. It is the same for the suites and clubs, the tickets themselves are not deductible. The "donations" that make you eligible to have your seats in the suites or club seating section are 80% deductible.
is correct. I is the "donation" part that is tax deductible. since you 'receive' something -- the right to purchase a seat, they are only 80% deductible.
So if your a season ticket holder and you pay that 500 per seat tax is that deductible?
Yes. The seat tax is seen as a mandatory donation.
80% ($400) of that $500 is tax deductible as a donation. The other 20% is considered payment for goods/services - in this case, you are paying for victors club privileges, as well as purchasing the option/right to purchase seats.
80% for federal
State of Michigan its up $200 for a qualifying institution (UofM)
And I think Michigan is a credit, so you get all $200 should you have enough tax due before the credit.
Those of us still in the great state of Michigan also get a 50% credit, up to $200, on your state taxes.
So for me, a $500 seat license was worth a $400 deduction on Federal and a $200 credit from the State.
Not bad. Not bad at all...
I have a friend who wants Popov to claim him as a dependent.
But as long as we're on taxes, be sure to check out the Making Work Pay tax credit; Schedule M, line 63 on your friendly neighborhood 1040.
From what I can tell, it's a $400 refundable credit ($800 for married couples filing jointly) for having a pulse.
** The previous statements are not to be considered recommendations for purposes of tax preparations. **
and your withholding was supposed to have been reduced to reflect it. I am not sure if it phases out as income goes up or not. Haven't done my taxes yet.
Remember that you do not qualify for the deduction if you don't itemize your deductions. If you file a 1040EZ, you will not get the deduction/tax credit.
I took the standard deduction, and still took the credit.
It appears in the "payments" section of the 1040, so technically the IRS considers this to be money you've already 'paid.' It's as if the government paid an extra $400 onto your withholdings for the year.
It isn't a deduction, it's a credit. It doesn't reduce your taxable income, it reduces the total tax owed on your income.
Tickets themselves could be tax deductable if you use them to entertain clients. Then, 50% of the ticket is deductable as a business expense. Comes in handy for the small business owner or independent contractor.