Z - DolphinsThe Miami Dolphins officially signed Ndamukong Suh to a $114 million contract.

The interesting thing is that they were competing with two NFL teams that have hefty state income taxes, California and Michigan.  California would have taxed 13.3% of Suh’s income.  Michigan would have taxed him 4.25%.  In Florida, there is no state income tax so the Dolphins leveraged this to their competitive advantage.

In other words, the Oakland Raider’s would have to pony up more than $15 million extra (over full length of Suh’s contract) to make up for the different tax rates.  If one only considers the guaranteed portion of Suh’s contract, which was $60 million, Oakland would have to pay $10.1 million extra for an equivalent offer.

Living in a warm climate and avoiding state income taxes brings a smile to my face.

If you’d like help lowering your tax situation, call Andrew Brody CPA JD at 305-728-5109 or 305-231-2150.  Canner Brody and Yan is a Miami CPA Accounting firm that has operated for over 65 years.  Minimizing taxes legally is our specialty.  We provide tax services for high net worth individuals and international tax services  as well.

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