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Tax Treatment of Complimentary Tickets

Mlb_logoWe previously blogged the effect of the IRS’s new rules requiring the withholding of tax from NBA players’ paychecks for complimentary tickets they receive and give to family and friends.  USA Today notes the impact of the rule on major league baseball:

Players still get free tickets, but the face value is tacked on to their salaries and increases the amount of income tax they have to pay. Not surprisingly, most players are cutting back. "In the case of my club, I’ve seen a tremendous decline," says Jimmy Bank, the Chicago Cubs traveling secretary. "This year it’s weeded out the guy in the parking lot who says, ‘Hey, can you leave me two?’ In the past, a player might say, ‘Sure.’ I’d say the new policy is having an effect on peripheral people."

(Thanks to Jeff Kahn (Santa Clara) for the tip.)


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