U.S. Tax and Cross-Border Tax Services for Professional Athletes and Entertainers
Professional athletes and entertainers often have extremely high long term financial goals, that is why they work so hard in mastering their craft. To fulfill an athlete or entertainer’s long term financial goals, many complicated factors need to be taken into consideration often with an eye towards the cumulative North American and global market. U.S. Tax IQ acknowledges these factors and works closely with agents and other trusted advisors of professional athletes, the team management, as well as with professional athletes and entertainers directly on covering their US-Canada cross-border tax compliance challenges. We assist professional athletes and entertainers in all aspects of the rigorous tax compliance requirements that permeate the border by offering wide range of U.S. Cross-Border tax services to fit our clients’ needs. No two athletes or entertainers have the same situation and we pride ourselves in our ability to navigate the complexities of cross border tax to provide quality and affordable service to our clients.
For most athletes, bonuses paid to Canadian residents or to non-residents of Canada for work performed in Canada are included in their total employment income and is taxable in that regard. However, the maximum tax rate is 15%. Similar rules apply to how signing bonuses are taxed in the United States. At the same time, taxation of signing bonuses varies depending on the country of residence of the athlete. The taxation of signing bonuses is a determination that is made based on their residency in Canada, residency in the U.S. or dual-resident status.
Our team has helped many athletes and entertainers through a variety of tax situations. Below are a selected list of circumstances that we have been involved in:
Agent and Legal Fees
Retirement Compensation Arrangements (RCA)
Assets Protection Strategies
Endorsement Income Planning
One of the areas of interest for established professional athletes is the tax-efficient structuring for endorsement income. Our team works alongside agents and financial planners to help clients achieve their financial goals. When an opportunity exists to receive supplemental income, we can assist in planning the most tax efficient methods to receive such income.