Did you know Olympic athletes have to pay taxes for the medals they bring home to the United States? It is not due to the actual value of the medal itself, but it is attached to the prize money that accompanies the gold, silver, or bronze medal the Olympian wins.
The United States Olympic Committee rewards our Olympic athletes with cash prizes. For gold, a medalist receives $25,000. A silver medalist receives $15,000 and finally a bronze medal is worth $10,000. It is estimated that a gold medalist will pay approximately $9,000 in taxes for each gold medal won. Silver medal winners will pay just under $5,400 in taxes and the bronze medal recipients will pay the I.R.S. around $3,500 in taxes. American medalists face income tax rate of 35%. They must add the value of their Olympic medals and prizes to their taxable income. At today’s commodity prices, it is estimated that the value of a gold medal is about $675. A silver medal is estimated to be valued at about $385 and a bronze medal is estimated to be valued at $5.
Of course any athlete who wins a medal bonus would be able to deduct any unreimbursed expenses from the bonus, reducing, their tax hit. As always, consulting a professional accountant is advisable.
As with any major decision, filing taxes or purchasing a home, consult professionals to advise you. The key to a successful real estate transaction is using Waterfront Properties and Club Communities real estate professionals. We are proud to make your real estate transaction, in the Jupiter, Florida and surrounding waterfront area go smoothly!
Waterfront Properties and Club Communities wish the 2012 Olympic athletes all the best!