New York Knicks hoops star Jeremy Lin will be saving more than $1 million in taxes by moving to Houston, estimates one group.

The Harvard-educated point guard became a major draw for the Knicks early this year, inspiring fans, especially Asian Americans, to cheer him on in a trend dubbed by New York sportswriters as “Linsanity.” But after suffering a knee injury in March, his future with the team became uncertain.
The Houston Rockets offered to sign him to a $25.1 million, three-year deal, which the Knicks declined to match Tuesday.
After signing the contract with the Houston Rockets, Lin will move from one of the highest-taxed states in the country to one of the lowest, noted the advocacy group Americans for Tax Reform, led by Grover Norquist. As a Knick, Lin paid a top state income tax rate of 8.82 percent, with New York City piling on at 3.876 percent. As a Houston Rocket, however, he will have no state or local tax burden.
At an average salary of $8,366,667, Lin will save over $1 million annually in state and local income taxes.
Lin will save a total of over $3.12 million in income taxes over the life of his contract with the Rockets, ATR noted. Factoring in his endorsement earnings, the tax savings will be even higher.











3 Comments
Both previous comments are valid. However, the point is by moving from New York (paricularly New York City) to Texas he will have a significant tax savings.
Posted by: hhoff0440 | July 20, 2012 8:24 AM
Report this Comment
He'll still pay income tax on most away games....up to 50% of his income will be subject to state/local income tax from away game locations! San Antonio, Dallas,Miami, Orlando ...may wind up being favorite away games...
Posted by: aguidr@aol.com | July 20, 2012 8:02 AM
Report this Comment
Are you factoring the deduction for state and local income taxes on Schedule A?
Posted by: Unknown | July 20, 2012 7:45 AM
Report this Comment
Add Your Comments...
Already Registered?
If you have already registered to Accounting Today, please use the form below to login. When completed you will immeditely be directed to post a comment.
Not Registered?
You must be registered to post a comment.