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Originally Posted by mrkajz44
I've done a few professional athlete's tax returns and it is a nightmare, no matter if their American, Canadian, whatever. You basically have to do a state tax return for every single state they played in during the year - it's awful. You also have to pro-rate their Canadian income for the provinces they play in; they don't get the "just tax them in their province of residence as of Dec 31" rule.
And there is no perk where you meet with the client as someone else usually handles all the money, so its just a hard return with no upside.
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Ha! I know. I've done a few and they suck. I also did the taxes for a notorious radio celebrity one year when I was working for another firm and that sucked hard. Not even crappy event tickets out of the deal.
Quote:
Originally Posted by Number 39
Is a professional athlete able to have their income flow through a numbered company which they set up to take advantage of business tax rates? If this is possible I assume most would do this and this would change the taxation discussion somewhat. Might be a non starter but I just don't know.
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Not usually as they have an employment relationship and they're bound by the regulations of the CBA and NHLPA.
It can be hard to be an independent contractor thats part of a union.
But there are other ways, various foundations and companies and investments that they can filter money through.
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Originally Posted by ricardodw
Would they set up foundations?
The Sedin's made a 1.5M donation to BC Children's hospital.
Would there be a way for them to leverage their donation?
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Well yeah, they can have their foundations but those are set up with the money that they earned.