Joe Flacco’s Corvette Stingray, which was a prize awarded to quarterback after he clinched the Super Bowl MVP title, will actually cost the athlete more than $25,000 in tax. This special Corvette was launched three weeks ago at the North American International Auto Show here. Joe Flacco was awarded the Most Valuable Player of Sunday’s Super Bowl by sportswriters, broadcasters and fans. Flacco’s new ride is worth $60,000, is set to cost the 28-year-old $25,700 in income taxes.
The information was let out by K. Sean Packard, a certified public accountant who specializes in preparing tax returns for professional athletes. If he decides to donate the car to charity, the tax bill would vary greatly depending on how he does it, Packard said. The huge tax bill is not inevitable Packard explained that if the Joe Flacco Corvette were donated to charity, the quarterback would dodge a significant tax bullet. The amount of tax depends on how he donates the car to charity.
There seems to be two ways he could go donating the car to charity. One is by receiving the car and handing it over to charity or express Chevrolet to give the car to charity. It is a clever distinction, but one that could have negative tax implications. If Flacco never takes the keys and asks Chevrolet to donate the car to charity, then the car never existed as far as Joe Flacco and the IRS are concerned. This does not quite bother Joe Flacco too. He is a free agent after this season and he is expected to garner a contract that will pay at least $10 million a year.
via Detroit free press