Tag

Deferred Income

All articles tagged with #deferred income

sports-taxation2 years ago•2 min saved

"California Controller Pushes for Tax Code Change Over Shohei Ohtani's $700 Million Dodgers Contract"

Shohei Ohtani's $700 million contract with the Los Angeles Dodgers, which defers $680 million over 10 years, has sparked concerns about the tax implications of deferred income for high earners in California. The state's controller is urging Congress to limit deferred income for higher earners, citing concerns about income inequality and tax structure imbalance. However, experts note that the issue may stem from a federal law preventing states from taxing nonresident retirement income, and Congress has not prioritized restrictions on deferred income.

via CNBC|

#california #congress #deferred-income

sports2 years ago•1 min saved

Shohei Ohtani's Contract Risks and Opt-Out Clause with Dodgers

Shohei Ohtani's historic 10-year, $700 million contract with the Los Angeles Dodgers, which defers $68 million annually, may carry financial risks. While the unique payout structure could provide tax benefits if Ohtani leaves California before receiving his deferred income, he could face higher federal tax rates on the payments. Additionally, deferring income means Ohtani cannot spend or invest $68 million per year over the next decade, and he faces reduced purchasing power if inflation returns. Financial experts suggest that by accepting deferred payments, Ohtani is taking a risk with the net value of his contract.

via CNBC|

#contract #deferred-income #financial-risks