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MLB General Discussion (Official Thread)

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Thump said:
Why any big time star would take on the taxes of playing in California is beyond me.
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Who else was seriously in it? Blue Jays probably have as high a tax, but I’m just guessing.

If memory serves me, they all pay a jock tax to every city they play in, so they can’t totally avoid taxes based on where they sign.

But I have to imagine a TX or FL team could have offered less and he still netted the same as after-tax in CA. Then again, he would have to live in TX or Fl;-)
 
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BuckBackHome said:
Who else was seriously in it? Blue Jays probably have as high a tax, but I’m just guessing.

If memory serves me, they all pay a jock tax to every city they play in, so they can’t totally avoid taxes based on where they sign.

But I have to imagine a TX or FL team could have offered less and he still netted the same as after-tax in CA. Then again, he would have to live in TX or Fl;-)
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Residency taxes are higher. If he chooses to live in LA that is....but he already lives in Anaheim...
 
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BuckBackHome said:
Who else was seriously in it? Blue Jays probably have as high a tax, but I’m just guessing.

If memory serves me, they all pay a jock tax to every city they play in, so they can’t totally avoid taxes based on where they sign.

But I have to imagine a TX or FL team could have offered less and he still netted the same as after-tax in CA. Then again, he would have to live in TX or Fl;-)
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You are correct. There is nothing to say that he has to be a CA resident….other than the fuckers at the CA FTB who will probably consider me a resident just for typing this out. :lol:
 
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Fungo Squiggly said:
You are correct. There is nothing to say that he has to be a CA resident….other than the fuckers at the CA FTB who will probably consider me a resident just for typing this out. :lol:
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Pro sports contracts are taxed based on where the game is played. Can't imagine doing the returns for an MLB guy. :lol:

I did property taxes for DeBartolo one year way back when. He had malls and horse racing tracks in about 40 states.
 
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Most of the contract is deferred

CPA's on here correct me if I am wrong but he will pay taxes at a rate based on his location and age when he receives said deferred dollars. Not all up front today, right?
 
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Jaxbuck said:
Most of the contract is deferred

CPA's on here correct me if I am wrong but he will pay taxes at a rate based on his location and age when he receives said deferred dollars. Not all up front today, right?
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Correct on a federal level, at least when I was doing tax prep (a while ago), but not necessarily in every state.
 
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Jake said:
Correct on a federal level, at least when I was doing tax prep (a while ago), but not necessarily in every state.
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so if CA taxes you a portion of your MLB "game check" when you play in CA, then he's doing the smart thing by deferring

whatever the mechanics of it, people are involved on his side that know what they are doing from a tax mitigation perspective.
 
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Jake said:
They weren't kidding about the deferral. He may be living in Japan when he collects most of it, taxed at 45% at current Japanese rates.

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I'm guessing he retires to Florida or Texas.

I'll take 2MM a year now and the other 68MM a year later, after I retire and move out of CA.

:lol:

Epic. Good for him.
 
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