Athletes, artists and entertainers
Athletes and entertainers often lead complicated lives financially. They may be a citizen of one country, living in another country, and earning income from a variety of sources in two or more countries.
With the increase in the complexity of one’s personal situation will be a significant increase in the personal income tax planning needs and tax return preparation requirements. A professional hockey player based in the United States may have to file a U.S. federal tax return and as many as a dozen different state and city income tax returns. Similarly, entertainers may have an income tax liability in every state they perform. They may also have other liabilities associated with their road crew, sales tax and other taxes.
Athletes and entertainers have unique tax planning issues. Their professional lives may change quickly depending on the contract and where they are based to provide services. Changes in personal circumstances may give rise to significant personal income tax issues to consider.
Andersen Tax in Canada has extensive experience in advising entertainers and athletes in Canada and the U.S.. We will work with their advisors to ensure that the necessary cross-border income and estate tax planning is undertaken to minimize taxes while also ensuring the necessary Canadian, U.S. federal, state and city income tax returns are prepared so they can focus on their sport or craft.