Reyes faces extra $8 million in income taxes as Toronto Blue Jay
Jose Reyess income tax bill could surge by $8 million during the next six years if his trade to the Toronto Blue Jays goes through, according to accounting firm EisnerAmper.
The Miami Marlins, who gave Reyes a guaranteed $106 million, six-year contract last December, are trading Reyes to the Blue Jays to purge $150 million in payroll.
The four-time All-Stars contract requires payments of $10 million in 2013, $16 million in 2014, $22 million in each of the next three years and $4 million in 2018, New York-based EisnerAmper said. The terms will be assumed by the Blue Jays if the trade is completed.
If all the above facts remain the same over the remaining term of the 2011 Marlins contract, and Reyes became a Florida resident and remained with the Marlins, he would have saved nearly $8 million in total income tax, the accountants said.
Counting the number of days Reyes would be playing for the Blue Jays in Canada, EisnerAmper determined the 29-year-old shortstop would have to pay $2.1 million tax as a non-resident on income of $4.2 million in Canadian source income.
Reyes still owns a house he bought in Nassau County, New York, in February 2007 while playing for the New York Mets, according to property tax records. Assuming he is a U.S. and New York State resident taxpayer, his U.S. federal and state income tax would total $2.72 million next year, EisnerAmper said. That would be in addition to the Canadian tax.