Windy City Tax Burden Will Hit NBA Star Hard

nba

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, CPA

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.

 

American-Dreams-Show-Accounting-firm-in-ca-cpa-tax-advisors-groco-alan-olsen

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…

Untitled_Artwork copy 4

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.

Posted in ,
The American Dreams Impact Legacy Conference 2023! online

American Dreams Impact Legacy Conference

American Dreams Impact Legacy Conference 2023 Unlock the secrets to building multi-generational wealth and intentional family legacies on September 19th at 10 AM PST. Dive deep into understanding the importance of crafting your family’s legacy with intent, rather than leaving it to chance. This event is your chance to gain insights from leaders who’ve mastered…

Intersection of Law and AI with Paul Callister

Intersection of Law and AI with Paul Callister

This week Host Alan Olsen interviews  Paul Callister, a dynamic individual with a diverse background, takes us on a journey through his educational path from chemical engineering to philosophy, followed by his transition from practicing law to becoming a law librarian and professor. As a former attorney in a family law firm, Paul sought to…

Growing Your Business Mindset with Ruben Resendez, President of adHere, Inc

Growing Your Business Mindset with Ruben Resendez, President of adHere, Inc

Transcript: Alan Olsen Hi, this is Alan Olsen and welcome to American Dreams. My guest today is Ruben Resendez. Ruben. Welcome to the show. Ruben Resendez A thank you so much, Alan, so Good seeing you again. Alan Olsen So Ruben, you have a very unique background and one that you’ve accomplished a lot within…

Democratizing Creativity: Dan Gedman and the Impact of Technology in Filmmaking

Democratizing Creativity: Dan Gedman and the Impact of Technology in Filmmaking

Transcript: Alan Olsen Hi, this is Alan Olsen and welcome to American Dreams. I’m busy here today with Dan Gedman. Dan, welcome to today’s show. Thank you. So Dan, you have a lot of great experience of diverse industries. And, you know, in American Dreams, we’re all about problem solvers have people’s path in life…