Speculation: Off Season Trade Thread Vol. IX - "Spezza's Last Week?" Edition

[Silex]

Was it fake Dregger?

 

[Sun God Nika]

Sweet so only like 3.7 rise our budget is 58 mil? so we will be 10 mil below the cap what was the differential last season?

 

[Gus Fring]

Wayne Scanlan ‏@HockeyScanner

Odds of Spezza deal have improved hugely now that Kesler is moved. Senators likely drafting tonight.

 

[HockeySens]

If Phoenix is really buying out Ribiero
Spezzza-Hanzal-Vermette can compete with Getzlaf-Kesler-Whoever

 

[Qward]

Sweet so only like 3.7 rise our budget is 58 mil? so we will be 10 mil below the cap what was the differential last season?

Our budget last year was 51M, Garrioch thinks it could be 56M this year.

 

[Sun God Nika]

Our budget last year was 51M, Garrioch thinks it could be 56M this year.

ahh thanks, so last season we 13 mill below the cap max, this season we will be some where between 12 - 10 million below it, at least things are getting better, just keep signing smart contracts and we should be able to stay competitive

 

[Lehner]

Well im glad thats not what we got for Spezza.

 

[DJB]

Canucks lost that trade. Hopefully we don't do the same.

 

[dan1el]

If we get for Spezza about what Anaheim moved for Kesler, it's time to blow'er up and start this rebuild over.

 

[Holdurbreathe]

http://www.cra-arc.gc.ca/E/pub/tp/it168r3/it168r3-e.html



Professional Athletes that play for a Canadian team are subject to all the same tax laws that a Canadian resident would be subject to.

Canadian athletes that play in the States must pay income tax in the states and Canada. Unless they can prove they meet the Sojourners act.

If you are in Canada for 183 days or more, you must pay income tax on all income. If you maintain a dwelling, property, charitable employment, the CRA can (and often does) deem you a Canadian citizen and you must pay income tax.

That is why when Alfie left he sold his house to Lehner and all his property, stepped down as head of his charity in Ottawa and moved his family with him to Detroit. If he didn't, he would be double taxed.

Agree with this up to the bolded.

You are right Alfie sold his house to avoid being a Canadian resident for tax purposes.

The reason wasn't to avoid being double taxed (really no such thing), it was to avoid having to file as a Canadian resident per Canadian tax law.

On $5.5M in Michigan his average tax rate (Fed + State) would have been 45.07%, in Ontario the combined average rate would have been close to 48.86%.

While not a huge difference, it still means a saving of over $200K before factoring in other tax benefits available to US residents (mortgage int. rate deductibility, etc).

So in simple terms Alfie would save in excess of $200K by living in Detroit vs Ottawa.

 

[Icelevel]

If we get for Spezza about what Anaheim moved for Kesler, it's time to blow'er up and start this rebuild over.

Won't happen stop worrying about unrealistic scenarios.
(Call me out if you need to.)

 

[guyzeur]

$64.3M last year.

Not sure if we should trust what you're writing now....

 

[bacon25]

Agree with this up to the bolded.

You are right Alfie sold his house to avoid being a Canadian resident for tax purposes.

The reason wasn't to avoid being double taxed (really no such thing), it was to avoid having to file as a Canadian resident per Canadian tax law.

On $5.5M in Michigan his average tax rate (Fed + State) would have been 45.07%, in Ontario the combined average rate would have been close to 48.86%.

While not a huge difference, it still means a saving of over $200K before factoring in other tax benefits available to US residents (mortgage int. rate deductibility, etc).

So in simple terms Alfie would save in excess of $200K by living in Detroit vs Ottawa.

wait till he goes to the hospital in Detroit, it costs $200K to get your arm x-rayed, but they do a fantastic job of it.

 

[Quo]

Not sure if we should trust what you're writing now....

I quadruple-checked this time. We're good.

 

[Holdurbreathe]

Wayne Scanlan ‏@HockeyScanner

Odds of Spezza deal have improved hugely now that Kesler is moved. Senators likely drafting tonight.

Believe you are right, hopefully the trade makes Chicago and St Louis more anxious and one of them makes a solid offer.

 

[Qward]

Agree with this up to the bolded.

You are right Alfie sold his house to avoid being a Canadian resident for tax purposes.

The reason wasn't to avoid being double taxed (really no such thing), it was to avoid having to file as a Canadian resident per Canadian tax law.

On $5.5M in Michigan his average tax rate (Fed + State) would have been 45.07%, in Ontario the combined average rate would have been close to 48.86%.

While not a huge difference, it still means a saving of over $200K before factoring in other tax benefits available to US residents (mortgage int. rate deductibility, etc).

So in simple terms Alfie would save in excess of $200K by living in Detroit vs Ottawa.

American tax law states you must pay tax if you earn income in the United States regardless of your citizenship. Playing for the wings Alfie would have to pay income tax (both Federal and State) on his contract and bonuses. If Alfie failed to meet the requirements of the Sojourners he would be deemed a "factual resident of Canada" He would have to pay Canadian Federal income tax on his earnings.

http://www.cra-arc.gc.ca/tx/nnrsdnts/cmmn/rsdncy-eng.html

 

[Micklebot]

wait till he goes to the hospital in Detroit, it costs $200K to get your arm x-rayed, but they do a fantastic job of it.

Team would probably pay for that, it's his wife and kids he has to worry about.

But, Obama care probably will fix him right up.

 

[Ouroboros]

Believe you are right, hopefully the trade makes Chicago and St Louis more anxious and one of them makes a solid offer.

Not sure Chicago could do it even if they wanted to.

If the cap is 68 million, they're already over.

 

[Holdurbreathe]

wait till he goes to the hospital in Detroit, it costs $200K to get your arm x-rayed, but they do a fantastic job of it.

LOL, sounds like Canadian propaganda!!

I would rather pay an insurance company and get medical service when needed as oppose to paying the Ontario government and wait and wait and wait!!!!

 

[Holdurbreathe]

Not sure Chicago could do it even if they wanted to.

If the cap is 68 million, they're already over.

There is no question Chicago would have to send contract to the Sens or elsewhere to make it work.

 

[bacon25]

LOL, sounds like Canadian propaganda!!

I would rather pay an insurance company and get medical service when needed as oppose to paying the Ontario government and wait and wait and wait!!!!

There is good and bad to both systems, as a Canadian living in the US, I can safely say that it would be best if everyone would just not get sick.

Anyways, what is Murray waiting for? I don't want to hear this trade announced by Bettman.

 

[BondraTime]

Would have given up 40th for Garrison, barring no UFA's

 

[Ouroboros]

Would have given up 40th for Garrison, barring no UFA's

It was said that he'd only waive his NTC for Tampa or Montreal.

 

[Blarginator]

Garrison for a 2nd round pick is cheap.

 

[Holdurbreathe]

American tax law states you must pay tax if you earn income in the United States regardless of your citizenship. Playing for the wings Alfie would have to pay income tax (both Federal and State) on his contract and bonuses. If Alfie failed to meet the requirements of the Sojourners he would be deemed a "factual resident of Canada" He would have to pay Canadian Federal income tax on his earnings.

http://www.cra-arc.gc.ca/tx/nnrsdnts/cmmn/rsdncy-eng.html

My only issue with your previous post was the double taxation statement.

US Tax Law
Citizens and residents are taxed on worldwide income and allowed a credit for foreign taxes. The US offers the foreign tax credit to mitigate the potential for double taxation.

Canada also offers a foreign tax credit to its citizens and residents for the same reason, to mitigate double taxation. Line 405 on the Canadian tax return.

People that fall into this situation are required to file both in the US and Canada, but aren't taxed double as you suggest.