Ed Reed’s $50,000 Fine Is Only $32,500 After Taxes
As everyone knows by now, Ed Reed’s one game suspension was lifted and his $423,529 fine was lowered to a mere $50,000.
.@adamschefterEd Reed’s $50,000 fine is tax deductible. Tax Benefit at 35% = $17,500 . Actual cost of fine =$32,500.
— Robert Raiola, CPA (@SportsTaxMan) November 20, 2012
Robert Raiola, a tax strategies expert for celebrities and athletes tweeted that Reed’s fine after taxes is only $32,500. It turns out that the fine is tax deductible, the tax benefit at 35 percent is $17,500.