Hey there, time traveller!
This article was published 15/11/2012 (1379 days ago), so information in it may no longer be current.
JOSE Reyes' income tax bill could surge by $8 million during the next six years if his trade to the Toronto Blue Jays goes through, according to accounting firm EisnerAmper.
The Miami Marlins, who gave Reyes a guaranteed $106 million, six-year contract last December, are working on a trade with the Blue Jays to purge $150 million in payroll, according to the Miami Herald.
The four-time all star's contract requires payments of $10 million in 2013, $16 million in 2014, $22 million in each of the next three years and $4 million in 2018, New York-based EisnerAmper said. The terms will be assumed by the Blue Jays if the trade is completed.
"If all the above facts remain the same over the remaining term of the 2011 Marlins contract, and Reyes became a Florida resident and remained with the Marlins, he would have saved nearly $8 million in total income tax," the accountants said.
Counting the number of days Reyes would be playing for the Blue Jays in Canada, EisnerAmper determined the 29-year-old shortstop would have to pay $2.1 million in taxes as a non-resident on income of $4.2 million in Canadian source income.
Reyes still owns a house he bought in Nassau County, N.Y while playing for the New York Mets, according to property tax records. Assuming he is a U.S. and New York State resident taxpayer, his federal and state income tax would total $2.72 million next year, EisnerAmper said. That would be in addition to Canadian taxes.
"If in 2013 Reyes remained with the Marlins and became a Florida resident, he would save $800,000 in combined net federal and New York State income tax and the additional $134,000 Canadian provincial income tax savings."
-- McClatchy News Service