Jose Reyes’s income-tax bill could surge by $8 million during the next six years if his trade to the Blue Jays goes through, according to EisnerAmper LLP, a NewYork-based accounting firm.
Reyes, who was signed by the Marlins to a guaranteed $106 million, six-year contract last December, has a contract that 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, EisnerAmper said.
“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, a four-time All-Star, still owns a house on Long Island he bought in February 2007 while playing for the 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.“If in 2013 Reyes remained with the Marlins and became a Florida resident, he would save $800,000 in combined net federal and New York State income tax and the additional $134,000 Canadian provincial income tax savings.”