08-22-2023, 05:30 PM
(08-22-2023, 12:09 PM)Luvnit2 Wrote: It depends on how they set up the contract. He can defer income of the contract to avoid taxes. Also, just an FYI, the 37% is the maximum tax on income, but 23% is capital gain taxes he can use if he defers income a few years minimum.
He will pay taxes to city of Cincinnati for games weeks in city, he will pay city taxes (if applicable) to city for road games. In some cases, no city taxes, in others taxes are higher.
As for expenses, they come off of his income and reduce his tax liability. Many NFL players defer income to not only reduce current tax liability, but also to build a retirement off ramp.
Any deferred income, the Bengals would have to place into an account (they can earn interest, not the player) to pay it as the contract dictates.
A player like Joey B. can also get a break from an agent on their fees. It is like negotiating with a real estate agent, the higher the selling ask price, the lower the rate. It is very common to pay 5% to sell a house versus the standard 7% ask by real estate agents.
What part of the contact can be considered capital gains? I would imagine he's a W-2 employee, so I can't really see what would fall into "capital gains"
