Article: Darvish Down To The Studs

[Ncgo4]

Really? There's a zip line across the Mississippi? Seems foolish for something you can just walk across in about 10 steps knee-deep.

 

http://www.lakesnwoods.com/images/LakeIt78.jpg

[curt1965]

I have enjoyed reading this excellent analysis of why Darvish is going to sign with Minnesota. The authors have been beyond informative and thorough in their presentations. Except for the Super Bowl, this has been the story that all of Minnesota, and especially TD readers, have been salivating over. But do you actually think Darvish is going to spurn the “bright lights” of Los Angeles or Chicago for ................ the Minnesota Twins?

Come on!

[Richie the Rally Goat]

I'm not sure what the point is of this post is....my point about Darvish, who is not from MN and probably wants to live where there are more Japanese (though we don't know that) and/or more diversity than you can find in MN.....is that MLB players don't actually spend that much time in their home cities. And, almost all the school year is not the MLB season.

indeed, I guess the point was when you make millions per year and travel heavily you can choose where you live, and being close to the home office is not very important.

 

People have many reasons to choose where to live, when cost and commute aren’t concerns it opens up a wide variety of options.

 

If he wants to save on state income tax, FL is a reasonable choice with the 0 income tax and proximity to spring training facilities.

[Richie the Rally Goat]

Opening day is March 29. 3-4 months would mean their season was over in June or July, not October.

being at home 6 days on 7 days off for 6.5 to 7 months... great!

[Mr. Brooks]

indeed, I guess the point was when you make millions per year and travel heavily you can choose where you live, and being close to the home office is not very important.

 

People have many reasons to choose where to live, when cost and commute aren’t concerns it opens up a wide variety of options.

 

If he wants to save on state income tax, FL is a reasonable choice with the 0 income tax and proximity to spring training facilities.

State income tax is paid where the money is earned, not where you live.

[Brock Beauchamp]

indeed, I guess the point was when you make millions per year and travel heavily you can choose where you live, and being close to the home office is not very important.

 

People have many reasons to choose where to live, when cost and commute aren’t concerns it opens up a wide variety of options.

 

If he wants to save on state income tax, FL is a reasonable choice with the 0 income tax and proximity to spring training facilities.

Someone correct me if I’m wrong but I thought pro ball players paid taxes based on where they play. Sixteen games in New York, you pay New York taxes on 10% of your salary. Eight games in Los Angeles, you pay California taxes on 5% of your salary.

 

Is that not how it works?

[Richie the Rally Goat]

Someone correct me if I’m wrong but pro ball players pay taxes based on where they play. Sixteen games in New York, you pay New York taxes on 10% of your salary. Eight games in Los Angeles, you pay California taxes on 5% of your salary.

 

Is that not how it works?

i didn’t think of that! Do you think income tax is withheld on the game check?

[twinssporto]

 

Someone correct me if I’m wrong but I thought pro ball players paid taxes based on where they play. Sixteen games in New York, you pay New York taxes on 10% of your salary. Eight games in Los Angeles, you pay California taxes on 5% of your salary.

Is that not how it works?

That's typically how it works. However...your home domicile plays a role too.  For instance, I believe Mauer is a Florida resident.  It makes a difference.

[Brock Beauchamp]

That's typically how it works. However...your home domicile plays a role too. For instance, I believe Mauer is a Florida resident. It makes a difference.

How so? Not challenging you, I’m legitimately curious.

[twinssporto]

I'm not a CPA but Mauer calling Florida home avoids paying MN income tax on his other earnings, I.e investment accounts, real estate income from other areas, outside income from advertising, etc., etc.  

[Richie the Rally Goat]

How so? Not challenging you, I’m legitimately curious.

what about bonuses, capital gains, and property taxes? None of those are in a game check.

 

Also, in reading my Wisconsin income tax guide. I earn income in MN and have my tax withheld at the MN rate, but I get a very slight credit that appears to be a result of some kind of marry up with reconciling the two states. Not sure tho

Edited February 10, 2018 by Sconnie

[Brandon]

Yeah

 

The Snowmobiling sucks in Southern California!!!

Mammoth mountains are only a few hours drive from soutgern CA. Lots of snowmobiling, snow boarding and skiing there. No ice fishing though.

[Riverbrian]

 

Mammoth mountains are only a few hours drive from soutgern CA. Lots of snowmobiling, snow boarding and skiing there. No ice fishing though.

 

Yeah but you can't get a decent plate of hot dish. 

[DaveW]

 

Someone correct me if I’m wrong but I thought pro ball players paid taxes based on where they play. Sixteen games in New York, you pay New York taxes on 10% of your salary. Eight games in Los Angeles, you pay California taxes on 5% of your salary.

Is that not how it works?

That's correct (states were smart about that), playing in a home state (50% of games) where there is 0% income tax comes into play, mostly you see it in the NBA or other leagues though with salary caps.

The Yankees+Dodgers will always overpay and help 'make up' for those high state taxes.

Players often 'claim' residency in tax friendly states (smartly I might add!) so they don't get as destroyed on all of their other sources of income:

commercial, endorsements, 1099, investments etc etc

Also why they all retire to those states as well (pension baby!)

[DaveW]

 

but I get a very slight credit that appears to be a result of some kind of marry up with reconciling the two states. Not sure tho

Yeah they do that to prevent people from taking advantage of the system, we see it here in NYC, you can't get out of the city/state tax by just 'moving' to Jersey, as it all basically evens out more or less.

[terrydactyls]

State income tax is paid where the money is earned, not where you live.

Don't confuse people with actual facts.

[rdehring]

 

Someone correct me if I’m wrong but I thought pro ball players paid taxes based on where they play. Sixteen games in New York, you pay New York taxes on 10% of your salary. Eight games in Los Angeles, you pay California taxes on 5% of your salary.

Is that not how it works?

Yes.  The problem is half a player's income is taxed in their home state, ie, Minnesota.  Our tax rate is what, 9%?  Texas is zero.  Half of $25,000,000 is $12,500,000.  9% of that is $1,137,500, or how much he would save signing in Texas vs. Minnesota.  California and New York would be as bad as Minnesota.  The real savings would be Florida, Texas or someplace like South Dakota. 

Edited February 10, 2018 by rdehring

[DaveW]

New York and Cali are much worse than even Minnesota

[Brock Beauchamp]

I'm not a CPA but Mauer calling Florida home avoids paying MN income tax on his other earnings, I.e investment accounts, real estate income from other areas, outside income from advertising, etc., etc.

Oh, sure. I knew that part, was wondering if there was something else.

 

Thanks.

[Kelly Vance]

I forgot lefse, somebody send Yu a box of lefse. But hold the lutefisk. 

Edited February 10, 2018 by Kelly Vance

[diehardtwinsfan]

 

Someone correct me if I’m wrong but I thought pro ball players paid taxes based on where they play. Sixteen games in New York, you pay New York taxes on 10% of your salary. Eight games in Los Angeles, you pay California taxes on 5% of your salary.

Is that not how it works?

Depends on the state to be honest. Some states have reciprocity agreements with other states (Wisconsin and Illinois are good examples). Some have clauses specifically written to tax professional athletes.

[mikelink45]

I have been pouring over my Baseball Prospectus and trying to see justification for overpaying Darvish and I cannot.  I do not find it in the stats or comments on Darvish - found in the Los Angeles Dodgers section, or in the Percota projections at the end where I look to find him in the leader boards.  Yes he is there in a couple, but his rankings do not give me confidence that he is a true ace - I see him as a B+ pitcher, which is still good, but his projections are going down and a large multi-year contract certainly is not supported in this book which I just received yesterday.

[Eris]

The tax on players is normally related to “duty” days. This article regarding a lawsuit against the city of Cleveland gives an overview.

 

https://www.google.com/amp/www.chicagotribune.com/business/ct-cleveland-jock-tax-0501-biz-20150430-story,amp.html

[gil4]

 

The situation kinds of reminds of a joke that I have heard many tell over my lifetime. I'm sure most of you have heard it... it goes like this: 

 

A fellow was stuck on his rooftop in a flood. He was praying to God for help.

Soon a man in a rowboat came by and the fellow shouted to the man on the roof, "Jump in, I can save you."

The stranded fellow shouted back, "No, it's OK, I'm praying to God and he is going to save me."

So the rowboat went on.

Then a motorboat came by. "The fellow in the motorboat shouted, "Jump in, I can save you."

To this the stranded man said, "No thanks, I'm praying to God and he is going to save me. I have faith."

So the motorboat went on.

Then a helicopter came by and the pilot shouted down, "Grab this rope and I will lift you to safety."

To this the stranded man again replied, "No thanks, I'm praying to God and he is going to save me. I have faith."

So the helicopter reluctantly flew away.

Soon the water rose above the rooftop and the man drowned. He went to Heaven. He finally got his chance to discuss this whole situation with God, at which point he exclaimed, "I had faith in you but you didn't save me, you let me drown. I don't understand why!"

To this God replied, "I sent you a rowboat and a motorboat and a helicopter. 

 

Substitute "Rowboat", "Motorboat" and "Helicopter" with: 

 

"Young Productive Core", "Weak AL Central", "Competitive Luxury Tax", "Rebuilding teams all over the landscape", "Manageable Budget Space", "Future Expiring Contracts" and " An Early Injury to Santana" 

 

And it is easy to see that the Baseball Gods want Darvish in Minnesota!!! 

Apparently we passed on the rowboat, motorboat and helicopter and will be waiting for a couple of the young guys to become Cy Young candidates.