'25 NC OT David Sanders (Tennessee commit)

#2,502
#2,502
The state income tax spiel is overblown. To begin with, you realize that people in income-tax states can deduct the first $10k in state income tax they pay from their Federal tax returns, right? Essentially the Feds pay their state income tax for them. Before 2018 they could deduct an unlimited amount. Wrong? Of course. Typical? Yes. Sorry to post this, but I get the feeling from they way people have always talked about high-tax states that most people are unaware of this tax-code bailout. It's always been unpublicized on purpose.

Fortunately, Sanders is too good and engaged a football player to choose his team that way. GBO!🍊 David Sanders, come on down!
 
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#2,503
#2,503
Orange. said:
The state income tax spiel is overblown. To begin with, you realize that people in income-tax states can deduct the first $10k in state income tax they pay from their Federal tax returns, right? Basically the Feds pay their state income tax for them. Before 2018 they could deduct an unlimited amount. Wrong? Of course. Typical? Yes. Sorry to post this, but I get the feeling from they way people have always talked about high tax states that most people are unaware of this tax loophole. It's always been unpublicized on purpose.

Fortunately, Sanders is too good and engaged a football player to choose his team that way. GBO! 🍊 David Sanders, come on down!
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I mean, for someone making $100k a year it may not make a big difference, but 4% of a $2m salary is $80,000, so even deducting the $10,000 from federal taxes, that still leaves $70,000 in state taxes to be paid, unless I’m doing this wrong. I’m definitely no tax expert but what am I missing?
 
#2,505
#2,505
I am a CPA weighing in here.

I am not your CPA, I am not a professional athlete's CPA, I am not offering tax advice.

Athletes in states with state income taxes will be asked to defend their position and it will likely come down to their individual contracts.

NIL is not for playing football, but they will likely go to court and try to determine whether that is true in substance and in form.

There's a lot of half-truths in this thread (SALT cap limitations for federal taxes, 51% residency requirements, etc) that are not 100% accurate or there are workarounds that are tried and true.

I will just offer my opinion that state taxation makes a huge difference and that even if someone is able to make the argument that X percent of their income does not apply to a state that has state income tax, you still have to pay the legal fees and CPA firm fees (along with potential penalties if you lose) if you are the first one taking an Uncertain Tax Position in that state.
 
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#2,507
#2,507
allamericanfulk said:
Sanders is much more college ball ready. Which imo Tennessee desperately needs. Might not start him as a freshman but if he comes here you definitly start him as a sophomore to replace Heard. Idk if Petty would be ready for that like Sanders will.
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I agree. Freshman year should be focused on getting a ton of weight on him bc he has the skillset and we know what this group of OL coaches can do developing
 
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#2,508
#2,508
LaagerVol said:
I mean, for someone making $100k a year it may not make a big difference, but 4% of a $2m salary is $80,000, so even deducting the $10,000 from federal taxes, that still leaves $70,000 in state taxes to be paid, unless I’m doing this wrong. I’m definitely no tax expert but what am I missing?
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I don't doubt that there are all sorts of tax loopholes and games played at that income level. It's the primary structure and purpose of the tax code to provide such benefits beneath the veneer of apparently higher rates. I am confident Sanders will be informed that after taxes: x gross at state a = y gross at state b. Not to worry. And I do not pretend to know the amounts of NIL on the table.

My primary point is that I think Sanders will come to Tennessee because that's where he wants to play football.
 
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#2,509
#2,509
BigOrangeFanatic said:
There's times AP straight up doesn't know or is truly 50-50...I think he knows on this one and he keeps saying OSU feels good to just not ruin the kids moment. But as always, it ain't over til it's over. Seen this show too many times.
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He knows what his info tells him. I'd say he is way better than 50-50. He had a rough year last year being it was his first year of dealing with NIL and the transfer portal. You're dealing with 17-22 year olds. If you can predict that, you will be the first person ever.
 
#2,511
#2,511
85SugarVol said:
Lol
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You can make taxes a NIL talking point, but in OH the first 25K isnt subject to tax and the highest rate is in the 3s. The NIL amounts may not be enough to go through hassle but he could set up a business for his NIL ventures since OH doesnt have a state corporate tax. (He would likely need to live outside of Columbus city limits to make this work though)

Regarding residency, signing of a lease, especially if an early enrollee would be enough in my mind to take advantage of Ohio's lower (3.X%) or our no state income tax as compared to NC's 5.X% rate

Long story short, taxes is a small talking point but not much more and a creative Columbus based accountant could negate part of that, if warranted...
 
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#2,513
#2,513
BarrythesnoUT said:
Slightly off topic.

The OSU On3 mods have to be the biggest, most unprofessional homers in the history of homerism. They’ve done nothing but participate in the ‘Those visits Sanders made over the weekend were just a facade; he’s a Buckeye.’ circle jerk with the rest of the delusional plebes on that board.
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He very well may be a Buckeye. I mean the narrative is out there that he's taking these visits to TN & Neb, just to be sure is def a narrative.

that said. IMG_7923.gif
 
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#2,514
#2,514
BarrythesnoUT said:
Slightly off topic.

The OSU On3 mods have to be the biggest, most unprofessional homers in the history of homerism. They’ve done nothing but participate in the ‘Those visits Sanders made over the weekend were just a facade; he’s a Buckeye.’ circle jerk with the rest of the delusional plebes on that board.
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Good, it’s going to be extra fun to laugh at clips of their meltdown on here.
 
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#2,516
#2,516
BigOrangeMojo said:
You can make taxes a NIL talking point, but in OH the first 25K isnt subject to tax and the highest rate is in the 3s. The NIL amounts may not be enough to go through hassle but he could set up a business for his NIL ventures since OH doesnt have a state corporate tax. (He would likely need to live outside of Columbus city limits to make this work though)

Regarding residency, signing of a lease, especially if an early enrollee would be enough in my mind to take advantage of Ohio's lower (3.X%) or our no state income tax as compared to NC's 5.X% rate

Long story short, taxes is a small talking point but not much more and a creative Columbus based accountant could negate part of that, if warranted...
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These NIL deals are multi-million $ contracts (for his level).

I would assume the guys getting the top end NIL deals would have consulted with a professional on how to structure themselves to minimize tax exposure. Or at least I would hope 🤷‍♀️
 
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#2,518
#2,518
Orange. said:
The state income tax spiel is overblown. To begin with, you realize that people in income-tax states can deduct the first $10k in state income tax they pay from their Federal tax returns, right? Essentially the Feds pay their state income tax for them. Before 2018 they could deduct an unlimited amount. Wrong? Of course. Typical? Yes. Sorry to post this, but I get the feeling from they way people have always talked about high-tax states that most people are unaware of this tax-code bailout. It's always been unpublicized on purpose.

Fortunately, Sanders is too good and engaged a football player to choose his team that way. GBO!🍊 David Sanders, come on down!
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This is not tax advice but I do not believe this is correct. You can add up to $10,000 ($5,000 if single) in state taxes to your itemized deductions for your federal return. You do not get to deduct $10,000 from the taxes you pay the federal government.
 
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#2,520
#2,520
Volfansince1980 said:
He knows what his info tells him. I'd say he is way better than 50-50. He had a rough year last year being it was his first year of dealing with NIL and the transfer portal. You're dealing with 17-22 year olds. If you can predict that, you will be the first person ever.
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All those guys are having to attempt to discern the validity of what they are told by players and support folks. Compounded by any commitment of secrecy. Bet they have been misled, and been burned by folks legitimately changing their minds without providing an update, as is their option. NIL is now the newest and biggest variable in the decision path for HS and portal candidates. Though cost of living, game attendance costs and taxes all have to be factored.
 
#2,521
#2,521
Orange. said:
The state income tax spiel is overblown. To begin with, you realize that people in income-tax states can deduct the first $10k in state income tax they pay from their Federal tax returns, right? Essentially the Feds pay their state income tax for them. Before 2018 they could deduct an unlimited amount. Wrong? Of course. Typical? Yes. Sorry to post this, but I get the feeling from they way people have always talked about high-tax states that most people are unaware of this tax-code bailout. It's always been unpublicized on purpose.

Fortunately, Sanders is too good and engaged a football player to choose his team that way. GBO!🍊 David Sanders, come on down!
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???? Would 3% on on a100k NIL deal be $3,000 state tax, which would reduce tax net for the feds from 100k to 97k X rate? Not the same as covering total bill. Just another deduction.

Feds are pretty good at maximizing their cut.
 
#2,523
#2,523
85SugarVol said:
These NIL deals are multi-million $ contracts (for his level).

I would assume the guys getting the top end NIL deals would have consulted with a professional on how to structure themselves to minimize tax exposure. Or at least I would hope 🤷‍♀️
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He will. Moreover Spyre is absolutely excellent in these matter. When the third party tells him that everything Spyre told him is 100%, that will increase his esteem for Tennessee. We have the best NIL guys in the business. They don't "play games" to deceive anyone. This has prolly already happened.

They don't need our help.
 
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#2,524
#2,524
BarrythesnoUT said:
They’ve given no evidence whatsoever to support why they believe, though. It’s like they’re wearing blinders.
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Its because they're used to getting whoever they want and that was before legal nil payments. They can't fathom why someone would turned them down especially when its documented they are providing the biggest bag.
 
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