It's official. New York Yankee Robinson Cano will soon switch coasts as a result of the contract that he signed with the Seattle Mariners. Both teams wanted the five-time All-Star second baseman, and both made nice offers.
As professional athletes' salaries continue to escalate, several revenue-strapped states seem to be looking to the athletes for a solution. Two NFL players are crying foul and taking one major city to court.
When Freddie Mitchell entered his plea deal last March, he'd live to regret it, he now says. The former wide receiver thought the deal was the best way to go, after an investigation showed he was neck deep in tax fraud.
UPDATE: Our recent article listed what NFL players can deduct on their taxes, and two of those deductions are making headlines in sports news this week: fines for personal behavior and rookie hazing expenses.
If the IRS is correct, NASCAR driver Juan Pablo Montoya owes the government a bit of money. Like $2.7 million. Montoya concedes he may have underreported some income, but he maintains the IRS is way off.
Professional athletes get a lot of glory, not to mention salaries that range from healthy to obscene, and all for doing what they love. It's one thing to envy their wealth, but when it comes time to file taxes, be glad you're not one of them.
Diego Maradona took a chance returning to Italy this month where he was once a well-loved soccer star. When he visited back in 2009, the Italian tax authorities promptly confiscated two Rolex watches and a pair of earrings, valued at about $20,700.
Phil Mickelson recently had about as perfect a two weeks in the United Kingdom as any professional golfer could hope for. Unfortunately for him, approximately 61 percent of his winnings will go to taxes.
Athletic stars with big personalities and untarnished images can make far more by lending those images to major companies than they can by performing well at their chosen sports. But how is endorsement income taxed?
Smart tax professionals who are aware of existing reciprocity laws can save professional athletes a bundle in taxes they don't really owe. That's why players have to rely on their tax advisors to know where reciprocity laws exist . . . and get it right.