It has come to my attention through the media that the NBA has fined Dallas Mavericks owner Mark Cuban $25K and that he plans to pay the fine by making a donation to a charity. Reading between the lines it seems that he has many choices. That raises the question in my mind as to whether he can claim a tax deduction for his donation.
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If it's a qualified charity and if he itemizes, then the answer is "Yes"."The only function of economic forecasting is to make astrology look respectful" - John Kenneth Galbraith -
fines
Okay then, instead of that option, what if he just pays the fine?Originally posted by JohnH View Post
I would say deductible as ordinary and necessary, since this is not a governmental fine
for which a deduction would ... what's the phrase? "frustrate public policy"?ChEAr$,
Harlan Lunsford, EA n LAComment
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I agree.Originally posted by ChEAr$ View Post
No matter what he does, it's deductible."The only function of economic forecasting is to make astrology look respectful" - John Kenneth GalbraithComment
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My Understanding, Harlan,
is that he is required to pick a charity. Not sure how the mechanics work - whether he pays the League and indicates the charity to them or pays the charity and shows receipt to the league. But apparently when people in US Pro Sports pay fines the money generally ends up in the hands of a charity chosen by the person paying the fine.Comment
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