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MLB General Discussion (Official Thread)

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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?
Click to expand...

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.
Click to expand...

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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I’m not an expert on how CA taxes things, but I expect that the money will still be tied to the state where it was earned. I’ve seen it with stock options vesting years after they were granted, but the income is still allocated to the state where the money was earned when the options were granted. I would expect this would be a similar situation.
 
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