Athletes Could See Big Tax Savings With Trump Proposals

shutterstock_388256968

 

It’s no secret that Donald Trump’s proposed tax plans would definitely benefit the nations’ wealthiest individuals. The president elect has made it clear he wants to overhaul our country’s tax system and his stated proposals indicate that the wealthy will see a healthy increase in the amount of money they get to keep.

Among the wealthy that will likely be saving a lot of money are professional athletes. Of course, almost all professional athletes make a very comfortable living, but certain of the top athletes in their given sports really stand to benefit from having Trump in the White House. First off, a large percentage of all professional athletes currently fall into the top tax bracket, which is more than 40 percent after adding the ACA net investment income tax of 3.8 percent. Under Trump that percentage would fall to 33 percent.

Here’s just one example of how much one star athlete could save thanks to the new president’s tax plans. Cleveland Cavaliers star LeBron James has a three-year $99 million deal. That means he would save an estimated $2.3 million every year on his salary alone. Add to that the savings he would receive on his endorsement earnings, which would be about $13.8 million a year, and James is likely to save more than $16 million annually in taxes.

There is a downside, as Trump has also proposed capping itemized deductions at $200,000, which means anything over that amount, which is entirely possible for James, he would not be able to deduct, thus reducing his total deductions amount. However, he would still likely have a total savings in excess of $15 million. James might have endorsed Hillary Clinton, but he will save more money with Trump.

http://www.forbes.com/sites/kurtbadenhausen/2016/11/10/trump-tax-plan-could-save-lebron-james-over-15-million-per-year/#731ad3552339

Posted in ,
Effective Uses of Trusts in Estate & Gift Tax Planning

Effective Uses of Trusts in Estate & Gift Tax Planning

Effective Uses of Trusts in Estate & Gift Tax Planning Function of Estates An estate is a legal entity that originates upon the death of an individual. An estate is set up to administer all legal affairs of the decedent to be settled and to distribute the assets owned by the decedent. Once all estate…

Real Home Owners Relief

Real Home Owners Relief

Real Home Owners Relief The sub-prime mortgage debacle is still playing out nationwide, with new home sales plummeting 61 percent since January, foreclosure rates doubling, and the number of borrowers 90-days or more in areas growing. In Northern California, East Bay homeowners – particularly, those residing in Contra Costa County, where many buyers make their…

8 Steps for Getting Out of Debt

8 Steps for Getting Out of Debt

8 Steps for Getting Out of Debt The average American spends a great deal more than they make every year. This results in a financial pitfall later in life. If you find yourself digging deeper into the empty wallet, here are ten steps you can use as a crutch to help free yourself of the…

6 Tips to Consider When Faced With Foreclosure

6 Tips to Consider When Faced With Foreclosure By Alan L. Olsen, CPA, MBA (tax) Managing Partner Greenstein, Rogoff, Olsen & Co., LLP Updated: 10/9/12 Many find themselves faced with foreclosure in the world today. Sometimes the circumstances leading to foreclosure isn’t your fault. If faced with foreclosure, most likely you want to know what…