A look at the tax implications of each of Dwight Howard’s options

Forbes had a great analysis of this topic some weeks ago, but here’s another one I saw tweeted by Darren Rovell last night, in chart form.  It was created by CPA Robert A. Raiola.

the tax implications of each of Howard's options

Raiola concludes that with a jock tax of approximately $536,550/year, after factoring in the state tax distinction, Howard would be left with a net of almost $12.6 million for each of four years, if joining the Houston Rockets.  “That’s a gain for Howard of $653,340 of net income, each year, even on a much lower annual salary.”

About the author: Rahat Huq is a lawyer in real life and the founder and editor-in-chief of Red94.net.

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