Thank you! Our institution has never offered this ticket access (to Athletics or arts, etc.) and I wasn't sure if the rule applied the same to general ticket sales as it would to specific, special/preferred seating. I'll ask counsel, as suggested.
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Kim Jefferies
Texas A&M University-Commerce Foundation
kim.jefferies@tamuc.edu------------------------------
Original Message:
Sent: 10-16-2024 11:37 AM
From: John Taylor
Subject: Early access to ticket sales
Actually, no.
The IRS still holds that preferential ticket access is a "more than substantial" benefit. Only athletic tickets were initially subject to the 80/20 rule; more recently, all deductions were denied for those.
However, I have been instructed that before the athletic 80/20 rule in the 1980s, preferential access applied to all ticket purchases, including cultural and arts programs. Only when athletic directors petitioned the IRS was a "special" rule created for athletics.
Granted, only a few institutions offer donors special ticket access (outside of athletics). Therefore, they may not have explored the original rules. However, I have confirmed with a few legal specialists that the rules applied to all seating purchases before the Tax Reform Act of 1986 and that the new rules only affected athletics. When the laws changed again to negate any deduction for athletic ticket preferences, only the athletic provision was impacted.
Therefore, I believe that the old law still applies to non-athletic tickets.
You will need to seek advice from counsel before proceeding.
John
John H. Taylor, PrincipalJohn H. Taylor Consulting, LLC
2604 Sevier Street
Durham, NC 27705
919.816.5903 (cell/text)
Serving the Advancement Community Since 1987
Original Message:
Sent: 10/16/2024 12:16:00 PM
From: Kim Jefferies
Subject: Early access to ticket sales
Our School of Music wants to give their donors early access to ticket sales for their events. Ticket prices will be the same for both donors and non-donors and general seating will be in place (no option to reserve special seats). Their donations would be fully eligible for a tax deduction, yes? The only benefit is access to purchase tickets before non-donors.
Thank you!
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Kim Jefferies
Texas A&M University-Commerce Foundation
kim.jefferies@tamuc.edu
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