Generosity on the Gridiron
With the college football season underway, fans should know that there may be a charitable deduction available for the right to purchase tickets with “special seating.” In the case of payments made to colleges and universities in exchange for the right to purchase tickets to athletic events, Code §170(l) allows a deduction for 80% of the payment made, although no deduction is available for the cost of the tickets themselves. If the total cost for the right to purchase tickets is $312.50 or more, the portion representing the charitable contribution will be $250 or more, requiring a contemporaneous written acknowledgment. Twenty percent of the amount paid for the right to purchase tickets for seating at college or university athletic events is treated as a good faith estimate of the fair market value of this right [Reg. §1.170A-13(f)(14)]. The deduction also applies to the purchase of skybox seats.
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