LeBron IRS Income Tax Brought To Light By Joe Mastriano, CPA…The Killer IRS CPA With Over 30 Years Of Experience!
LeBron James IRS income tax decision raised questions among his fans across the country. Why did he pick the Miami Heat? Are any economical aspects involved in basketball player choice?
Speculations have spread all over the media that he did his homework before he chose to sign a contract with the Miami Heat. He made his tax calculations and he figured out that over the years he will benefit from good tax treatment in Florida.According to a CNBC report, LeBron James will make $1,014 million more in Miami over the first five years than in his home state of Ohio.
Did LeBron James Choose The Miami Heat Over The New York Knicks For Tax Reasons?
New York high income taxes might be the reason for LeBron’s decision. If he had chosen New York Knicks, he would be liable for more income taxes. It is well known that many New Yorkers are overwhelmed with the amount of income taxes they pay. That is why some of the high-income individuals are planning their taxes in financially sunnier states like: Florida, Texas, Nevada and few others.New York Post estimated LeBron’s tax bill:”On a five-year contract worth $96 million — what he’d get from the Knicks or the Heat — LeBron would pay $12.34 million in New York taxes. Quite a penalty for the privilege of working in Midtown.”
Would LeBron James Pay No Income Taxes?
According to a New York Times article, James LeBron would have to pay income taxes for games he plays across the country, even if he does not have to pay income taxes in Florida, a no income tax state.”So just because Mr. James will not be paying state income taxes to Florida does not mean he will not be paying state income taxes anywhere. He will probably still end up paying the tax collectors in whichever states he plays away games next season, on whatever portion of his annual salary he technically earns while working in those states.”Basketball fans are still wondering about LeBron’s IRS Income tax decision. In the tax community, lawyers and accountants are still attempting to estimate LeBron’s state tax liabilities.Whatever the reason may be for LeBron to sign the contract with The Miami Heat, Florida remains a no personal income tax state, a dreamland for taxpayers who live and pay taxes in a high-income states like New York or California.No wonder Tiger Woods left California for Florida.