Welcome To aBlackWeb

Register

NBA Offseason thread

Status
Not open for further replies.
I think most people knew that the NBA players in Canada get taxed by them and the state they claim as their residents. It's other players who have sited that as one of the reasons they didn't like playing for the Raptors.

Kawhi could always "sell" aka put the house in his mom or family members name and claim he is a resident of a tax free state, like Texas, Florida, or Washington state. Him and his mother both have homes still in San Antonio unless they have already sold them.

Kawhi is about his money and the taxes can most definitely play a part in him wanting to leave for Los Angeles. I've stated a few times already he wanted to go to Los Angeles anyway and tried to force his way there once before so I wouldn't be surprised if he signed with the Lakers. I Hope he stays in Toronto but I doubt he will
 
O.G. said:
Then there is the pesky issue of state taxes. California does not allow a credit for taxes paid to foreign countries or provinces, so Leonard would be on the hook for California taxes on 100% of his income. Those taxes on his Raptors income would amount to $4,871,000. All told, his net annual income with the Raptors would be $14,618,000, or $58,472,000 total over the first four years of the contract.
If he signs with the Lakers, Leonard will only pay US and California taxes, along with jock taxes for which he will receive credits on his California return. On an average annual salary of $35,152,500, he will pay the US and California roughly $17,681,000, netting $17,471,500 after taxes. He would net $69,886,000 over the four years.
During the first four years after signing his max contract, Leonard will pocket an extra $11,414,000 by signing with the Lakers than he would signing with the Raptors.
It was a dream year for the Raptors, who are still a solid team. But when they make their run next season, it will be without Kawhi Leonard.
- Forbes
Click to expand...

In no way am I tax expert, but Kawhi could avoid this if he makes another state his residence.

Rent a small spot in Miami and say that is your permanent US address and you wont pay any state income tax. Same with Texas, Delaware etc.

You only pay state taxes in the state you live in and the state you work in. If you live in NJ and work in NY, you pay state taxes for both. But if you lived in NJ and worked in Delaware, you only pay taxes for NJ cause DE doesnt have taxes.

So Kawhi can easily work around this. Shit businesses do it all the time.

Motherfuckers really writing anything for clicks and views.
 
#1hiphopjunki3 said:
I think most people knew that the NBA players in Canada get taxed by them and the state they claim as their residents. It's other players who have sited that as one of the reasons they didn't like playing for the Raptors.

Kawhi could always "sell" aka put the house in his mom or family members name and claim he is a resident of a tax free state, like Texas, Florida, or Washington state. Him and his mother both have homes still in San Antonio unless they have already sold them.

Kawhi is about his money and the taxes can most definitely play a part in him wanting to leave for Los Angeles. I've stated a few times already he wanted to go to Los Angeles anyway and tried to force his way there once before so I wouldn't be surprised if he signed with the Lakers. I Hope he stays in Toronto but I doubt he will
Click to expand...

Kawhi doesnt even have to sell.

I own property in another state and dont pay any income taxes to that state.

He just has to say he lives in Miami and rent a crib out there.
 
www.crowe.com

The Kawhi Leonard saga: will he stay or will he go? | Crowe Soberman LLP

Canadian tax rates are higher than in the United States, there’s no denying it. But are they the deal-breaker the media makes us believe?
www.crowe.com www.crowe.com

Canadian tax rates are higher than in the United States, there’s no denying it. But are they the deal-breaker the media makes us believe? Let’s look at how athletes, like Kawhi, are taxed in Canada.
Kawhi is an employee of Maple Leaf Sports and Entertainment, working at their Toronto location, Scotiabank Arena. He gets a paycheque like any other Canadian employee. (His just has a lot more zeros!) The top tax rate for an employee residing in Ontario is a combined federal and provincial rate of 53.5 percent. So, on a salary of $38M, his taxes would be approximately $20.3M.
Compare that to a player living in Los Angeles. An employee of a California-based team will pay U.S. federal tax at a top rate of 37 percent and California state tax at a top rate of 13.3 percent, yielding a combined tax rate of 50.3 percent. So on those same earnings of $38M, he’d pay $19.1M in tax. But you’ve read enough of our articles by now to know that’s not the end of the story!
The U.S. has very expensive social security taxes—a maximum of approximately $8,000, compared to $2,700 (USD) in Canada for Canada Pension Plan and employment insurance. In the U.S., a Medicare tax of 2.35 percent is also added to your paycheque for another $893,000. (Medicare is an often-overlooked factor when it comes to comparing taxes for athletes on Canadian versus U.S. teams.) Now take another look: the difference is much more palatable –approximately $300,000—a difference of less than 1 percent!
Let’s now look at Kawhi’s situation specifically. If he chooses to re-sign with the Raptors, Kawhi would likely remain a tax resident of the U.S. As such, he’d be taxed there on his entire salary. And yes, he’d pay the CRA as well—but they can only tax employment earnings for days worked in Canada. Using the 2018 calendar year as an example, the Raptors calculated that their players spent 66 percent of their working days in Canada. Thus, only two thirds of his salary would be taxable in Canada. Credits are available in the U.S. for taxes paid in Canada, meaning effectively that a player pays the higher of either the Canadian tax rate or the U.S. tax rate on his working days in Canada.
 
King Freeman said:
www.crowe.com

The Kawhi Leonard saga: will he stay or will he go? | Crowe Soberman LLP

Canadian tax rates are higher than in the United States, there’s no denying it. But are they the deal-breaker the media makes us believe?
www.crowe.com www.crowe.com

Canadian tax rates are higher than in the United States, there’s no denying it. But are they the deal-breaker the media makes us believe? Let’s look at how athletes, like Kawhi, are taxed in Canada.
Kawhi is an employee of Maple Leaf Sports and Entertainment, working at their Toronto location, Scotiabank Arena. He gets a paycheque like any other Canadian employee. (His just has a lot more zeros!) The top tax rate for an employee residing in Ontario is a combined federal and provincial rate of 53.5 percent. So, on a salary of $38M, his taxes would be approximately $20.3M.
Compare that to a player living in Los Angeles. An employee of a California-based team will pay U.S. federal tax at a top rate of 37 percent and California state tax at a top rate of 13.3 percent, yielding a combined tax rate of 50.3 percent. So on those same earnings of $38M, he’d pay $19.1M in tax. But you’ve read enough of our articles by now to know that’s not the end of the story!
The U.S. has very expensive social security taxes—a maximum of approximately $8,000, compared to $2,700 (USD) in Canada for Canada Pension Plan and employment insurance. In the U.S., a Medicare tax of 2.35 percent is also added to your paycheque for another $893,000. (Medicare is an often-overlooked factor when it comes to comparing taxes for athletes on Canadian versus U.S. teams.) Now take another look: the difference is much more palatable –approximately $300,000—a difference of less than 1 percent!
Let’s now look at Kawhi’s situation specifically. If he chooses to re-sign with the Raptors, Kawhi would likely remain a tax resident of the U.S. As such, he’d be taxed there on his entire salary. And yes, he’d pay the CRA as well—but they can only tax employment earnings for days worked in Canada. Using the 2018 calendar year as an example, the Raptors calculated that their players spent 66 percent of their working days in Canada. Thus, only two thirds of his salary would be taxable in Canada. Credits are available in the U.S. for taxes paid in Canada, meaning effectively that a player pays the higher of either the Canadian tax rate or the U.S. tax rate on his working days in Canada.
Click to expand...

All of this and more was explained in the Forbes article.
 
Status
Not open for further replies.
Back
Top