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Somebody get Big E a good CPA

Deacon923

Deacon923

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And possibly a lawyer.

http://www.cbssports.com/collegebasketball/story/15421905/class-of-2002-serves-as-a-cautionary-tale-for-todays-allamericans

"Basketball over here is good," added ex-Wake Forest big man Eric Williams. "It's not as easy as people think and guys get multi-million contracts. I've made tons of money and the best part is it's all tax-free. Life isn't all that different than being in the NBA -- except you're in another country."

Williams earned $200,000 his first season in Italy, made $300,000 this past season and has his rent and use of a car paid for by the team.
 
Also, I don't think that Italy has income taxes. He's doing quite well for himself over there.
 
The Stig said:
Also, I don't think that Italy has income taxes. He's doing quite well for himself over there.
Click to expand...

"If you are a U.S. citizen or resident alien, the rules for filing income, estate, and gift tax returns and paying estimated tax are generally the same whether you are in the United States or abroad. Your worldwide income is subject to U.S. income tax, regardless of where you reside."

From the IRS website. You get a dollar for dollar credit for any foreign taxes you pay.
 
I believe if you live overseas for more than 280 days in a year, you are not required to pay tax on that income ... at least that was the case when I worked overseas after college.
 
DeaconCav06 said:
"If you are a U.S. citizen or resident alien, the rules for filing income, estate, and gift tax returns and paying estimated tax are generally the same whether you are in the United States or abroad. Your worldwide income is subject to U.S. income tax, regardless of where you reside."

From the IRS website. You get a dollar for dollar credit for any foreign taxes you pay.
Click to expand...

Wait...so if you are a US citizen, and move to another country to live, you still pay US income tax?

Or is that only if you list your home as in the US?
 
There are all sorts of rules including the 280 day rule. It's really complicated and it's further complicated by the existence of individual tax treaties with each country. It's also been 4 years since I've taken Int'l Tax and I didn't do very well. Luckily for me I get to retake it in about a week and a half.
 
As a US Citizen, you have to pay income tax on anything earned abroad over $75,000 annually.

He's gonna be paying some taxes here and there.
 
The Stig said:
Also, I don't think that Italy has income taxes. He's doing quite well for himself over there.
Click to expand...

You think wrong. Italy has a highly progressive income tax.

My best guess is that Big E gets a tax gross up. There's no way he is (legally) escaping tax-free.
 
Most European bball leagues report/negotiate salary in post-tax amounts. You might remember from the Josh Childress thing. Not sure what Big E's US tax liability is.
 
Wouldn't be the first time I was wrong. Had a friend who lived over there for a while and claimed that was the case which was the extent of my knowledge.
 
DeaconSlim2.0 said:
Wait...so if you are a US citizen, and move to another country to live, you still pay US income tax?

Or is that only if you list your home as in the US?
Click to expand...

Generally, yes. We are one of only a handful of countries that tax world-wide income based on citizenship. Tax treaties and foreign tax credits work to minimize double taxation.
 
Most of the time you get a credit for tax you pay in another country. The only issue is if you are in a country with a really low tax rate, you may owe extra to the US. They do this so that an executive doesn't just say he lives and works in "random country X" to avoid paying the full amount of US taxes.
 
minifrostylin said:
that's some bullshit.
Click to expand...

you could always renounce your US citizenship. When you wanted to come back to the US, you would have to get a visa like everyone else, but you wouldnt have any US tax liability.



I dont know anything about taxes in Italy, but if they have a high tax rate and he is getting grossed up by the team, he would get credit for the taxes paid by the team and would like not owe any additional US taxes (assuming the rate in Italy is at or above the US rate).
 
If you're living in Europe and making a good salary, you're probably going to pay more in taxes to whichever country you're working in than you'd owe the US Government anyway.
 
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