Athletes Could See Big Tax Savings With Trump Proposals
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
India Gets Help From the IRS to Track Down So-Called “Black Money”
India Gets Help From the IRS to Track Down So-Called “Black Money” We’re all aware of the U.S. government’s efforts to bring home tax dollars from those who either hold or earn money in foreign countries. Whether a company or an individual taxpayer is open about their money or purposely trying to hide it, the…
Strategic Asset Management With a Revocable Living Trust
Strategic Asset Management With a Revocable Living Trust Developing a sound investment management strategy is more than allocating assets and diversifying among the various asset classes. It is also about attaining your financial goals in life. The long-term security of your family is likely to be a key goal. To reach it, you want to…
A Safer Way to Invest in Stocks
A Safer Way to Invest in Stocks Investing in stocks can be really risky—particularly when somebody invests a lot of money at once and expects quick results. But it’s also true that investing in stocks can be surprisingly safe for certain investors. The men and women who are putting regular amounts into stock funds through…
IRS Makes It Difficult to Use “Separate Share” Trusts
IRS Makes It Difficult to Use “Separate Share” Trusts By Mary Kay Foss California CPA, August 2003 The IRS has issued a series of private letter rulings (LTRs 200317041, 200317043, 200317044) this year that make it difficult to use “separate share” trusts. A separate share trust is a trust named as an IRA beneficiary that…