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Videos- Saturday Headlines & Brian Burke On Tax Advantages For Players In Some U.S. Cities

Topics of discussion include- Alex Pietrangelo contract status, when will next season start and expanding the playoffs and no delay for the Seattle Kraken start up.

via Sportsnet,

 

Allan Walsh tweet,

I’m shocked at how uninformed this take is-
1. Players in Canada can set up a Retirement Compensation Agreement (RCA) and limit their tax liability to a flat 20%.  With sound tax advisors, a NHL player can actually pay the same or less tax in Canada than he will Florida or Vegas.

via Sportsnet,

Brian Burke breaks down the tax advantage to players joining teams in certain American cities where the tax rate is much lower, and what Canada can offer in order to compete for free agents.

 

Filed in: NHL Teams, NHL Talk, | KK Hockey | Permalink
 

Comments

d ca's avatar

Allen Walsh is full of it and trying to not hurt his business.

1) Player has to retire somewhere else than Canada. Southern Ontario’s top marginal income tax rate: 53.53%. Using a RCA and living outside Canada that rate becomes 15-25% (treaties (or conventions) rate depending on where they live).

2) Only half of the money invested into an RCA by a players could be invested in stocks or real estate, while the other half remained in control of the Canadian government and not earn income. Over 30+ years that’s a lot of lost income and should exceed the tax benefits (given market growth)—the whole interest and gains vs mattress argument.

Florida, Arizona, and Tennessee have HUGE tax advantages. It’s why those guys are willing to accept less money to play in those states but demand NTC’s.

Burke’s right this agent is wrong.

Posted by d ca on 09/20/20 at 06:48 PM ET

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Paul Kukla founded Kukla’s Korner in 2005 and the site has since become the must-read site on the ‘net for all the latest happenings around the NHL.

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