Chevy giving Tom Brady's MVP truck directly to Malcolm Butler
It's official: Malcolm Butler is getting Tom Brady's MVP truck.
The Patriots quarterback said earlier this week that he "he would love" to give Butler the truck, the only problem is that giving a truck away in the United States isn't cheap. By giving the truck to Butler, Brady would have possibly been subject to a gift tax of $8,000.
The company giving away the truck, Chevrolet, figured out a way for Brady to duck the gift tax: They're going to give the truck directly to Butler in a ceremony that's set to take place on Feb. 10 in Boston.
That's the good news.
Now the bad news: Butler is still going to have to pay taxes on the truck. Since Chevy is giving the truck directly to Butler, that means no one will have to pay the $8,000 gift tax, however, someone will still have to pay tax on the truck.
Robert Raiola, a CPA who specializes in sports tax management, told ESPN.com that the value of the truck -- $35,000 -- will count as taxable income for Butler. If Butler is taxed at the highest income tax rate of 39.6 percent, he'll owe an additional $13,860 in taxes for the truck.
Now this is where Brady comes in again. Theoretically, Brady could pay that tax for Butler because under current tax code, one person is allowed to gift another person up to $14,000, which just happens to be enough to cover the $13,860 in taxes Butler will owe.
Even if Butler does have to pay the tax though, he's still getting a good deal, he'll only be paying roughly $13,860 for a brand new 2015 Chevy Colorado.
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