Tag

Deferred Compensation

All articles tagged with #deferred compensation

sports2 years ago•4 min saved

"Shohei Ohtani's Dodgers Contract Offers Tax Benefits, Delights Fans, Amidst MLB Turmoil"

Shohei Ohtani's record-setting contract with the Los Angeles Dodgers includes a unique bonus: the potential to mostly avoid California's high income taxes. With 97% of his income deferred, Ohtani could choose not to live in California after his playing career ends, potentially avoiding the state's 13.3% income tax and 1.1% payroll tax. The details of Ohtani's contract appear to fit within a federal law that prohibits states from taxing the retirement incomes of former residents. While the exact amount of state taxes Ohtani will pay is unknown, his contract highlights the impact of wealthy residents on California's finances.

via KABC-TV|

#california-taxes #deferred-compensation #los-angeles-dodgers

sports2 years ago•16 min saved

Decoding Shohei Ohtani's Unconventional Contract

Shohei Ohtani's 10-year, $700 million contract with the Los Angeles Dodgers is actually heavily deferred, with $680 million (97 percent) of the total amount being deferred. This unique contract structure has raised questions about competitive balance tax implications, the Dodgers' payroll flexibility, and the future of extreme deferrals in MLB. Ohtani's decision to defer a significant portion of his salary is seen as a strategic move to support the team's ability to build a competitive roster around him. While the $700 million figure grabs attention, the contract's present-day value is closer to $460 million, which aligns with earlier projections. Overall, Ohtani's contract showcases his commitment to winning and his willingness to make long-term bets on himself.

via The Ringer|

#contract #deferred-compensation #los-angeles-dodgers

sports2 years ago•1 min saved

Shohei Ohtani's Unprecedented Contract Deferral Stuns Baseball World

Shohei Ohtani has reportedly agreed to a 10-year, $700 million deal with the Los Angeles Dodgers, with the majority of his salary being deferred until the end of the contract in 2034. The deferred $680 million will be paid without interest from 2034 to 2043. Ohtani's suggestion to defer the money aims to help the Dodgers with future spending efforts and navigate the competitive balance tax. The MLB cannot challenge or cancel the contract due to the absence of limitations on deferred compensation in the collective-bargaining agreement. The deferrals also benefit Ohtani from a taxpayer's perspective, as he may avoid heavy state taxes if he is not living in California when the payments begin.

via NBC Southern California|

#contract #deferred-compensation #los-angeles-dodgers

sports2 years ago•1 min saved

Shohei Ohtani's Unprecedented Contract Deferral: A Game-Changer in MLB

Shohei Ohtani has reportedly agreed to a 10-year, $700 million deal with the Los Angeles Dodgers, with the majority of his salary being deferred until 2034. Ohtani's suggestion to defer $680 million of his annual salary is aimed at helping the Dodgers with future spending efforts and navigating the competitive balance tax. The deferrals also benefit Ohtani from a taxpayer's perspective, as he may avoid heavy state taxes if he is not living in California when the deferred payments begin.

via NBC Sports Bay Area|

#contract #deferred-compensation #los-angeles-dodgers