Super Bowl MVP to Owe Huge Tax Bill on Gift

by Christopher Freeburn | February 6, 2013 11:30 am

football Super Bowl MVP to Owe Huge Tax Bill on Gift[1]While Baltimore Ravens Quarterback Joe Flacco is likely still feeling the elation of having led his team victory in Super Bowl XLVII, he may end up having to send the IRS a big check[2].

Flacco was voted the Most Valuable Player (MVP) in Sunday’s NFL title game, which won him a 2014 Corvette Stingray, made by General Motors’ (NYSE:GM[3]) Chevrolet. According to Forbes, the tax bill for the $60,000 car would be $25,700, should he decide to keep it.

If Flacco opts to accept the flashy car, but then donates it to charity, he will still be on the hook for $6,900. However, should he simply direct Chevrolet to donate it to charity without ever taking possession of the vehicle himself, Flacco won’t face any tax bill from the government.

Regardless of how the Ravens quarterback decides to handle his MVP award, he is unlikely to face any problem paying his taxes. Flacco is expected to ask the Ravens for roughly $20 million a year to extend his contract with the team[4].

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2010/10/football.jpg
  2. having to send the IRS a big check: http://www.forbes.com/sites/kurtbadenhausen/2013/02/04/tax-implications-of-joe-flaccos-super-bowl-mvp-award/
  3. GM: http://studio-5.financialcontent.com/investplace/quote?Symbol=GM
  4. to extend his contract with the team: http://investorplace.com/2013/01/nfl-quarterback-asking-for-20-million-a-season/

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