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How do you use the Training Exemption

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330091.2 in reply to 330091.1
Date: 1/31/2026 12:16:26 PM
Mos Eisley Imperials
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The training exemption is for luxury (overextension) tax calculations only. If you're running at a deficit and don't have a training exemption, you pay a 50% luxury tax on the deficit. The training exemption excludes that much of your overextension / deficit from the tax.

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330091.4 in reply to 330091.3
Date: 1/31/2026 3:55:32 PM
Mos Eisley Imperials
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Overall Posts Rated:
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Like it says right on the hover over the Overextension Tax calculations that tells you your exemption...

Overextension is calculated from Average Revenue - Total Expenses + Training Exemption, and then subject to a 50% tax rate.

So if your rolling average revenues are $350k and you have a $100k training exemption, you can support a rolling average of $450k of expenses without taxes.

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330091.8 in reply to 330091.7
Date: 2/5/2026 12:44:07 PM
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Overall Posts Rated:
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Though you do still have to have the actual cash to run at a deficit -- it just means your cash to buy titles with extends 33% further if you do it in a way that doesn't incur the wrath of the Overextension Tax.

Also, training exemption counts when you buy a U21 donkey big the day before his 22yo season reset. (I haven't committed science or seen documentation on when the deadline for him to be on your team is -- whether he'd have to be on your team prior to the economic update that ends the season immediately before offseason processing begins, or whether you'd get the credit as long he's on your team before age & salary update runs. My expectation would be that he has to be on your team as of the economic update.)

Last edited by Azariah at 2/5/2026 12:45:42 PM