Event Type: Seminar, Social event
State Tax considerations are an often overlooked aspect of financial planning for high net worth individuals, including Athletes, Entertainers and Corporate CEO's. In most case, taxpayers must pay personal income tax to their state of residence on their worldwide income. This includes income derived from employment contracts and bonuses, as well as endorsement and sponsorship deals. Additionally, in states where they do not reside, athletes and entertainers increasingly find themselves subject to aggressive enforcement of "Jock Taxes," which look to impose tax on income "earned" in nonresident states. Reed Smith's attorneys have extensive experience representing athletes, entertainers, corporate executives, and other high-net-worth individuals in residency and income allocation matters, including audit disputes and appeals and will share examples of issues they have seen with their clients.
Speakers include: Stephen J. Blazick (Partner, Reed Smith LLP) and Jason Feingertz (Associate, Reed Smith LLP)
This panel will cover:
- State tax rules related to residency, income allocation, tax credits and tax withholding obligations
- How athletes, entertainers, corporate executives, and other high-net-worth individuals may be able to reduce taxes (or obtain refunds of taxes paid) when maintaining dual residences or moving from one state to another
- Practical examples will be provided involving athletes who relocate to play for a new team-whether through the draft, a trade or free agency-as well as athletes who play for teams in one state, but maintain off-season homes in other states
- Tips to ensure compliance with burdensome multistate Jock Tax obligations and ways to structure signing and other bonuses to minimize state taxes.