Windy City Tax Burden Will Hit NBA Star Hard
Windy City Tax Burden Will Hit NBA Star Hard
So how much is $47.5 million really worth? The answer is it all depends on where you live. Most of the NBA’s top free agents recently signed their new contracts, many with new teams, including former Oklahoma City Thunder Star Kevin Durant, who is now a member of the Golden State Warriors. No doubt all NBA players are very wealthy, of course, some more than others.
However, concerning free agent deals, the numbers aren’t always what they seem. Take for example the case of former Miami Heat star Dwyane Wade. Wade wanted a two-year $50 million deal from his former team, while the Heat offered a two-year $40 million contract. Ultimately, Wade decided to take his talents to the Chicago Bulls for a two-year $47.5 million deal. It’s a no-brainer right? That’s $7.5 million more than the Heat offered.
However, in choosing to move to Chicago Illinois, Wade will now be subject to a much higher tax rate. For starters, Florida has no state income tax. Illinois on the other hand has a 3.75 percent income tax, which means, Wade will owe close to $900,000 of his annual salary to the state. Additionally, Illinois does not give tax credits to resident athletes that pay taxes to other states for games played on the road. That means he will be double taxed for income earned in those games.
The city of Chicago also has some additional taxes that Wade will be subject to, all of which means his take-home pay could actually be about the same as it would’ve been had he signed for less total money with the Heat. So in the world of NBA contracts and taxes, the numbers aren’t always as they seem.
http://www.rebootillinois.com/2016/07/13/editors-picks/joe-kaiser/a-pricey-homecoming-dwayne-wades-890000-illinois-tax-bill/61516/
We hope you found this article about “Windy City Tax Burden Will Hit NBA Star Hard” helpful. If you have questions or need expert tax or family office advice that’s refreshingly objective (we never sell investments), please contact us or visit our Family office page or our website at www.GROCO.com. Unfortunately, we no longer give advice to other tax professionals gratis.
To receive our free newsletter, contact us here.
Subscribe to our YouTube Channel for more updates.
Alan Olsen, is the Host of the American Dreams Show and the Managing Partner of GROCO.com. GROCO is a premier family office and tax advisory firm located in the San Francisco Bay area serving clients all over the world.
Alan L. Olsen, CPA, Wikipedia Bio
GROCO.com is a proud sponsor of The American Dreams Show.
The American Dreams show was the brainchild of Alan Olsen, CPA, MBA. It was originally created to fill a specific need; often inexperienced entrepreneurs lacked basic information about raising capital and how to successfully start a business.
Alan sincerely wanted to respond to the many requests from aspiring entrepreneurs asking for the information and introductions they needed. But he had to find a way to help in which his venture capital clients and friends would not mind.
The American Dreams show became the solution, first as a radio show and now with YouTube videos as well. Always respectful of interview guest’s time, he’s able to give access to individuals information and inspiration previously inaccessible to the first-time entrepreneurs who need it most.
They can listen to venture capitalists and successful business people explain first-hand, how they got to where they are, how to start a company, how to overcome challenges, how they see the future evolving, opportunities, work-life balance and so much more..
American Dreams discusses many topics from some of the world’s most successful individuals about their secrets to life’s success. Topics from guest have included:
Creating purpose in life / Building a foundation for their life / Solving problems / Finding fulfillment through philanthropy and service / Becoming self-reliant / Enhancing effective leadership / Balancing family and work…
MyPaths.com (Also sponsored by GROCO) provides free access to content and world-class entrepreneurs, influencers and thought leaders’ personal success stories. To help you find your path in life to true, sustainable success & happiness. It’s mission statement:
In an increasingly complex and difficult world, we hope to help you find your personal path in life and build a strong foundation by learning how others found success and happiness. True and sustainable success and happiness are different for each one of us but possible, often despite significant challenges.
Our mission at MyPaths.com is to provide resources and firsthand accounts of how others found their paths in life, so you can do the same.
Nevada Set to Give Tesla Motors Huge Tax Deal
Nevada Set to Give Tesla Motors Huge Tax Deal By Alan Olsen One of the world’s most popular new car companies continues to make waves as it works to not only redefine how cars are made and run, but also change the way cars are sold. The latest move by Tesla Motors is not only…
Tips for Helping You Beat Those Annoying Fees and Taxes
Tips for Helping You Beat Those Annoying Fees and Taxes “How do I beat all of those bothersome taxes and fees and get more return on my investments?” It’s a question that almost all investors ask, but it’s one that many people never get answered. In order to get the most out of your investment…
Most Expensive Cars of 2017
Most Expensive Cars of 2017 Are you in the market for a new car this year? Need some slick new wheels to impress your friends? Maybe you want to add to your already impressive collection, or find the right piece to start a new one. Whatever the case, if you’re looking for a new set…
The Roots of the Family Business
The Roots of the Family Business By Elizabeth Bowden-David As entrepreneurs, my husband and I take every opportunity to teach our children about the family business. They are still pretty young, so we stick to basic concepts such as product, customer, revenue, cost, and profit. Many of these discussions take place around the dinner table…