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.
How to Defend Yourself When Your QuickBooks Files Are Part of an Audit
How to Defend Yourself When Your QuickBooks Files Are Part of an Audit The world of technology has changed just about every aspect of our lives. The tax and accounting world is no different. Thanks to online tax programs and software packages designed for accounting purposes, keeping a solid record of your important financial information…
Develop a Sound Investment Plan
Develop a Sound Investment Plan When the stock market heads south, is your first instinct to sell stocks and get into something safer? With a well-planned portfolio, that’s probably the last thing that you should be doing. After all, a plan tailors a mix of stocks, bonds and cash equivalents to your particular financial goals,…
Bad Attitudes in the Workplace
Bad Attitudes in the Workplace Studies show that employee morale has taken a hit lately. Worker morale slumped last year, according to the results of a new survey from Randstad, one of the world’s largest professional employment services providers. The review was compiled from 3,233 online interviews, conducted this spring for Randstad by Harris Interactive.…
The Language of Wills
The Language of Wills Many professions and disciplines have their own vocabulary. As an example, think about the terminology used in medicine and law. Often this vocabulary defines complex ideas, yet just as often “terms of art” can be defined with relative ease to a layperson. Such is the case with much of the language…