Just Answer Just Answer

Ask Your Tax Question. Tax Experts Answer You ASAP
(Not a Tax Question?)

Question

tax reduction tips-$60mill/NFL contract/$20 guaranteed


Sent to Tax Experts May 13 11:49 p.m.

details are primarily above. I want to offer 3 ideal scenarios for $60 million NFL contract (20 guaranteed) and minimize taxes as much as possible. need answers beyond primary residence in FL/TX, gifts, etc. would like answers on how much of signing bonus & guar. to take year 1, salary for 17 weeks, remainder of signing bonus in may ''09, etc....

Optional Information:
newark, New Jersey

Already Tried:
discussions with CFP and general tax questions from CPA.
Customer (name blocked for privacy)
Status: Closed   Value: $45   
Answer
May 14 8:22 p.m. (20 hours and 32 minutes later)
ACCEPTED Check Mark

Hello binha,

With the amount of money you are talking about, there really is no way to save significantly in taxes. If you are a single taxpayer, once you reach an adjusted gross income of $357,700 for the year, anything over that is automatically taxed at 35%. So no matter how much you would ask for as a signing bonus in any given year, or how much of a salary in any given year, unless you were to spread out the $60 million over a period of 30 years, your tax difference would be minimal.

The main tax advantage that you might have is your state of residency. There are currently 7 states that do not impose a state income tax - Florida, Texas, Alaska, Nevada, South Dakota, Washington and Wyoming. Considering that an average state tax could cost you around 5 to 6% per year, that would be a significant savings if you could make one of those states your state of residency.

If this answer has been helpful, please press the "Accept" button. Positive feedback is also greatly appreciated. Thanks for the question.

PictureMerlo  -- Corporate and Personal Tax Preparer -- 100% Positive Feedback on 438 Tax Accepts
Over 25 years experience in corporate and individual tax preparation.
7/9/2008 to 7/16/2008
Reply
Sent May 14 9:11 p.m. (49 minutes and 0 seconds later)

can you confirm if the following deductions will be allowed? Also, please let me know the max allowable...

Charity up to 50% of income
Florida & NJ Mortgage interest and tax
Florida real estate sales tax (is that the same as any of the above?)
Commission & Financial Advisory fees
CPA fee
Sports agent fees
Anything else?
Customer (name blocked for privacy)
Answer
May 14 9:37 p.m. (26 minutes and 44 seconds later)

THIS ANSWER IS LOCKED!
You can view this answer by clicking here to Register or Login and paying $3.
PictureMerlo  -- Corporate and Personal Tax Preparer -- 100% Positive Feedback on 438 Tax Accepts
Over 25 years experience in corporate and individual tax preparation.
7/9/2008 to 7/16/2008

Think you can answer this question?
 Login or  Become an Expert









DISCLAIMER: You acknowledge that any information you may obtain from individuals you contact through use of the Just Answer service comes from those individuals, not from Just Answer!, and that Just Answer is not in any way responsible for any of the information these third parties may supply. The site and services are provided "as is" with no warranty and no representations are made regarding the qualification of an Expert. Responses and comments on Just Answer! are for general information and are not intended to substitute for informed professional advice (such as medical, legal, investment or accounting) and do not establish a professional-client relationship. Just Answer! is not intended or designed to address EMERGENCY QUESTIONS which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service.
   Just Answer! > Income Tax