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Whether the Chiefs win or Lose the State of Missouri is the big winner on Sunday. Introduction Win or lose the State of Missouri will cash in this weekend with the Kansas City Chiefs appearance in this year’s Super Bowl.  With the game being played at Raymond James Stadium in Tampa Bay and in a state […]

Although all income is subject to federal tax, where the bonuses from this year’s NFL playoffs and Super Bowl becomes interesting is at the state level. With this year’s Super Bowl in Tampa, Florida, a state that does not levy income tax, this does not mean that Patrick Mahomes and his teammates will not face state tax issues regarding this year’s bonus.

Starting in the 2020 tax season, the IRS is bringing back a form to report nonemployment compensation that hasn’t been utilized for 38 years. Although it will have no impact on the preparation of your tax return or tax liability, it is important to properly handle the reporting of the income to avoid future penalties […]

Introduction Under the United States Constitution each state has the freedom to invoke their own tax policy separate from the federal government. With professional athletes playing in multiple states, the definition of state residency may potentially cause them to face resident tax issues in multiple states. State or city residents are required to pay tax […]

Potential tax reform takes a substantial bite out of not only Lebron James contract extension but all professional athlete’s contracts. Introduction December 2nd, 2020 – The Los Angeles Lakers agreed to a two-year contract extension with LeBron James, reported to be worth $85,655,532. The extension pushes James’ original four-year contract into a fifth year, in […]

Introduction For US resident hockey players, playing outside the United States borders in two Canadian hub cities in this year’s Stanley Cup playoffs could mean substantial tax savings on their US state tax returns and the longer they stay within the bubble the larger those tax savings could be! Background In March when the COVID-19 […]

Professional sports teams in high-tax states need to adjust to a new economic reality under the Tax Cut and Jobs Act of 2017. This past fall, an article by Alan Pogroszewski, Kari Smoker and Keith Donnelly, published in the NYS Society of CPAs online publication, The Tax Stringer, addressed the impact the Tax Cut and […]

Abstract At the time of passing the Tax Cuts and Jobs Act (TCJA), it was known that the limitation of itemized deductions would negatively impact athletes playing in high income tax states. However, after closer examination of the law, another potential impact on the sport industry became apparent. Previously, trades between sport teams did not […]

Non-resident NHL players face five times the jock tax in Pittsburgh as compared to their resident counterparts This past November, the Players’ Associations from the NFL, NBA and NHL filed a lawsuit against the City of Pittsburgh claiming that the City’s Non-Resident Sports Facility Usage Fee is actually a tax. The lawsuit argues the “tax” […]

A question that is becoming more common is whether there is any tax benefit to forming a Limited Liability Company (LLC)? The short answer is no. The decision to form an LLC should be made because of the legal protections it provides. For individuals who run a business, they should understand the different business structures […]