Saturday, March 16, 2013
In Garcia v. Commissioner, 140 T.C. No. 6 (Mar. 14, 2013), the Tax Court allocated 65% of golfer Sergio Garcia's compensation from his contract with golf club manufacturer TaylorMade to royalties (for use of his image rights) (and thus not subject to U.S. taxation) and 35% to personal services (and thus subject to U.S. taxation), rather than the 85%/15% split provided for in the contract.
- Bloomberg, Golfer Sergio Garcia Loses in U.S. Tax Court on Endorsements
- Forbes, Golfer Sergio Garcia Comes Up Short In Tax Court, But Is The Decision A Victory For Other Athletes?
- Reuters, Sergio Garcia Scores Birdie in U.S. Tax Court
- Sports Illustrated, Sergio Garcia Must Pay More U.S. Taxes on Endorsements
- TaxProf Blog, Retief Goosen Birdies at FedEx St. Jude Classic, Bogeys in Tax Court