Reyes Faces Extra $8 Million in Income Taxes as Toronto Blue Jay
The Miami Marlins, who gave Reyes a guaranteed $106 million, six-year contract last December, are working on a trade with the Blue Jays to purge $150 million in payroll, according to the Miami Herald.
The four-time All-Star’s contract 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, New York-based EisnerAmper said. The terms will be assumed by the Blue Jays if the trade is completed.
“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.
The trade also would send Josh Johnson, Mark Buehrle, John Buck and Emilio Bonifacio to the Blue Jays, the Herald reported yesterday, citing a person familiar with the trade who requested anonymity.
In return, the Marlins would receive shortstop Yunel Escobar, infielder Adeiny Hechavarria, pitchers Henderson Alvarez and Justin Nicolino, outfielder Jake Marisnick and one of three catchers: J.P. Arencibia, Bobby Wilson or Jeff Mathis, the Herald said.
After signing free agents Reyes, Buehrle and Heath Bell before the 2012 season, the Marlins finished 69-93 for last place in the five-team National League East, 29 games behind the Washington Nationals. They traded Bell to the Arizona Diamondbacks last month.
The Marlins fired manager Ozzie Guillen on Oct. 23 after their first season in a $515 million retractable-roof stadium. Miami hired former catcher Mike Redmond Nov. 1 to succeed Guillen. Redmond, 41, spent last season with the Blue Jays’ Class-A minor-league affiliate in Dunedin, Florida.
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 still owns a house he bought in Nassau County, New York, in February 2007 while playing for the New York 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.”
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