College donors could lose tax deduction

A short and seemingly unassuming provision in Section 1306 of the House version of the Tax Cuts and Jobs Act is going to have many college donors upset and could potentially have a significant impact on the budgets of universities throughout the country. 

Under current law, donors may deduct 80% of their contribution to a University and/or University’s Athletic department where that donation is tied to preferred seating or parking.  For college fans, that would be contributions to the Tennessee Fund at the University of Tennessee, the K Fund at the University of Kentucky, or Indiana University's IU Foundation.  Under both the House and Senate versions of the bill, the ability to deduct 80% of the contribution for this preferred treatment would go away. 

My recommendation to my friends and clients that typically make these types of contributions, is to make the contribution by December 29, 2017 and not take the risk of waiting to see what unfolds.

I'd like more information on this deduction. 


Tagged Tax Cuts and Jobs Act, Tax Deductions, College Donors, College Athletics