Business entertainment drives a lot of sports revenue, but this expense won't be tax-deductible.
One thing they won’t be: Tax-deductible
Business entertainment drives a lot of sports revenue. But for the high-end Vikings tickets that are coupled with seat licenses, the cost will be mostly not tax-deductible.
The amount deductible for any sports ticket used for business entertainment is limited to the face value of the ticket. This rule kicks out seat licenses and scalper fees.
In the case of a skybox lease, the amount allowable as a deduction may not exceed the sum of the face value of non-luxury-box seat tickets.
The IRS allows a tax break for seat licenses at college sports, but not for professional sports. Eighty percent of the amount paid to a college or university for the right to purchase tickets, whether or not used for business entertainment, is deductible as a charitable contribution. Not so for professional sports.
So, seat license and skybox leases at the new Vikings stadium will not be tax-deductible business expenses.
In addition to these various limitations, business meals, tickets and parking at a Vikings game, like any business meals and entertainment, are only 50 percent tax deductible.
That doesn’t mean that some of those costs won’t sneak through an expense report as marketing expense, but it’s not correct.
MARK SELLNER, Plymouth
Three strikes in one day, should be out
When three articles appear before you on the same day concerning fracking, you have got to wonder whether this is an ominous thing.
• France opts to keep a ban on hydraulic fracturing because the environmental costs are too high, even though it is one of the most promising European countries for shale gas extraction. Can France be any smarter than us?
• The next article states that as the oil patch booms, “so does organized crime in North Dakota and Montana. More people equals more money equals more crime.” It appears to be a losing battle, according to the authorities.
• The third article is about the recent huge oil spill in North Dakota. North Dakota authorities say they will review the safety of the pipeline process. Did anyone think about checking this out before they started?
Three good reasons to question the wisdom of this craziness, but where there is money and jobs involved, you don’t want caution or wisdom to stand in the way.
The Opinion section is produced by the Editorial Department to foster discussion about key issues. The Editorial Board represents the institutional voice of the Star Tribune and operates independently of the newsroom.