Instead of Tom Brady paying taxes to give his Super Bowl MVP truck to New England Patriots cornerback Malcolm Butler, Chevy will reportedly give the car directly to Butler.
The truck will be given to Butler on Tuesday during an event with the company. Butler, who was a rookie this past season, will have to pay taxes on the car now.
If Brady received the truck himself and gave it to Butler, he would have to count its value -- which Albano said was worth roughly $35,000 -- as income and he would be taxed on it, said Robert Raiola, a CPA who specializes in sports tax management with O'Connor Davies in New Jersey. Brady also might have had to pay a gift tax. U.S. residents can give $5,430,000 worth of gifts in their lifetime before having to pay tax on what they give. It is not known how close Brady might be to that limit.
Now instead of Brady paying income taxes, Butler will have to, according to Raiola. The approximately $35,000 value will now count as income to Butler, and he will pay taxes on that.
Butler, a rookie, made $585,000 this past season, including a minimum of $420,000 and a $165,000 bonus that all Patriots players got for the postseason.
We'll see if Brady, who has made more than $150 million in his NFL career, helps pay off that $35,000 for Butler, too. Either way, a nice gesture by the star quarterback to give his truck to Butler.
