NBA Stars Losing Hefty Amounts of Their Salary to the Taxman
Just about everyone knows that professional athletes make a ton of money. Whether you agree with athlete salaries or not, the fact is those hefty numbers you always see reported when an athlete signs a new deal aren’t really all that they’re cut out to be. Oh sure, they are making a lot of money, but they are also paying quite a large tax bill. In some cases, that bill can put a huge dent in their actual earnings.
According to a new report, when determining whom the highest paid NBA player is, it depends on which numbers you use. Kobe Bryant earns more than any other NBA player, coming in with a salary of $23 million this year. However, if you look at his tax bill, which is estimated at $11.4 million, then his actual take home pay is only $12.1 million. That means he is paying close to half of his salary to the taxman.
Several factors played a role in determining these tax numbers, including where a player lives, and where he plays both his home and road games. Road games play a big role in the equation because some cities enforce the so-called “jock-tax” on individuals who come to the area to work. Pro athletes schedules are easy to track, so these cities can easily implement this tax.
There’s no question that NBA players are well compensated for their services, but remember, most players are giving a huge percentage of their income back in taxes, thus reducing how much they actually take home by a large portion. Of course, these tax numbers are an estimate and there are certain measures these players can take to help reduce their tax bill. So they might be able to take more home than estimated.
Likewise, if you need help finding the all of the best ways to save on your tax bill, then contact. GROCO today.
Rate Yourself Using Debt-to-income Ratio
Rate Yourself Using Debt-to-income Ratio By Linda Stern WASHINGTON (Reuters) – If you were a company, what would the analysts be saying about you? Most investors use financial ratios to grade the companies the average debt to income ratio by age buy and sell, but they rarely subject their own finances to the same…
Taxpayers Have Until April 17 to File and Pay
Taxpayers Have Until April 17 to File and Pay Taxpayers across the nation will have until Tuesday, April 17, 2007, to file their 2006 returns and pay any taxes due, the Internal Revenue Service announced today. Taxpayers will have extra time to file and pay because April 15 falls on a Sunday in 2007, and…
IRS FIN 48
IRS FIN 48 Background As a result of the impending effective date for the application of Financial Accounting Standard Board Interpretation No. 48, Accounting for Uncertainty in Income Taxes, of FASB Statement 109 (FIN 48), some taxpayers may wish to request a greatly accelerated examination and resolution before the end of their current financial statement…
Where Should You Retire if You’re Wealthy?
Where Should You Retire if You’re Wealthy? Best Places Retire in USA if You’re Wealthy You’ve spent your lifetime accumulating wealth through your employment and other business endeavors. You have been successful at what you do and now the time has finally come when you’re ready to ride off into the sunset, so-to-speak. It’s time for…