Tuesday, July 3, 2018
Forbes, LeBron James' Move To Lakers Could Cost Him $21 Million In Extra State Income Taxes:
The $154 million question is: How much is the move to LA really costing James? As with any tax question, the answer is simple: It depends. On a lot of factors.
About the only fact we know is that his salary this season will be $35.7 million. The rest is fuzzy. Will he become a California resident? He owns a house out there, so it seems to make sense that he would be a resident after he signs his four-year deal. Not so fast — California has some of the most liberal residency laws in the country. Rather than focusing on days spent in the state, California focuses more on domicile and the temporary/permanent nature of one’s stay there. ...
Should he become a California tax resident, this move will cost him $5.2 million this year on salary and endorsement income, not to mention higher taxes on investment income. This would end up being over $21 million in additional state income taxes over the life of the contract.
The Hill, Nunes to LeBron: Brace yourself for California's Taxes