Quote:The difference of 15% by an enrolled agent is far from correct, and very misleading.

 

Players pay state taxes in every state they play a game in that collect state taxes. There are four NFL states that do not collect state taxes. Florida, Tennessee, Texas, and Washington. The Jaguar players do benefit by playing both the Texans, and the Titans. When they play the Colts, they pay their portion of the state taxes, and have to file just like any other citizen.

 

Some of the taxes used to approach the 15% in this calculation are also tied to property taxes, which may also vary per being a primary, or secondary resident (or more).

 

All NFL players pay federal taxes, at which point they deduct the state, and local taxes assessed by the states they played in. The NFL players also are able to deduct any other cost of doing business in the state they worked in. I am fairly certain that per diem is adjusted per local cost of living, which is not taxed. Per diem is quite a low amount, and most likely not considered. If Mack plays for Cleveland, he will deduct his state taxes, as well as the taxes of all of the other states he “works” in from his federal tax obligation.

 

I am no tax expert, but I did stay at a holiday inn on business, to which I deducted those cost from my federal taxes.

 

Federal was never looked at.

 

Ohio has a high rate of taxation on high income earners.

Yes a good CPA will find every reduction they are able.

I questioned the 15% figure and was informed that when taken in as a whole, the additional levy's on high income earners of taxes and fee's

work right into a 15% advantage to move.

 

YtraM is correct the the Browns do not have this as an cost to them

It is a factor when a player is entertaining a change of tax venue, Ohio to Florida.

 

So the plan is to structure the offer to the maximum disadvantage to the Browns in years that cause them greatest distress.

With the Browns who have been known to be FRUGAL to a fault knowing that the player will know that he will have a much reduced tax liability.

 

So it comes down to can the Jags come up with an offer that is to much for the Browns and one that they can live with.

 

HeadSlap

---