Latest news with #luxurytax
Yahoo
4 days ago
- Business
- Yahoo
Magic's Luxury Tax Outlook After Paolo Banchero's $287 Million Contract Extension
Magic's Luxury Tax Outlook After Paolo Banchero's $287 Million Contract Extension originally appeared on Fadeaway World. The Orlando Magic have one of the more promising young cores in the NBA. Graced with uniquely talented players in their starting rotation, the team has locked in a franchise player for the future by offering Paolo Banchero a massive five-year contract, which could be worth up to $287 million. Banchero has shown steady improvement with each passing NBA season. Coming off a career year of averaging 25.9 points, 7.5 rebounds, and 4.8 assists, the 22-year-old has shown all the makings of a future superstar in the league. The contract extension offered to the Magic forward is the first rookie-scale max extension with a player option for the final year, a first since the contract extensions of Luka Doncic and Trae Young in 2021. This only displays the franchise's commitment towards building around its star. This will be a welcome sight for Magic fans, who have a lot to be excited about after their team's recent offseason moves. But there will be some concerns associated with the Magic's luxury tax situation in the future. With Banchero's contract extension being finalized, the Magic will have four players who are earning over $30 million once the forward's contract is in effect, with three nearing or exceeding $40 million. These are the expected cap hits of the team's core of Paolo Banchero, Franz Wagner, Desmond Bane, and Jalen Suggs for the 2026-27 season: Franz Wagner - $41.7 million Paolo Banchero - $41.3 million Desmond Bane - $39.4 million Jalen Suggs - $32.4 million While this poses long-term cap concerns for the Magic, with an estimated $350 million bill in the 2026-27 season, the 2025-26 season seems relatively more friendly. Orlando has done a great job of retaining some key rotation players on relatively team-friendly salaries. With the re-signing of Moritz Wagner on a one-year, $5 million deal, along with the addition of Tyus Jones, an expiring contract worth $7 million, the Magic have made some good deals. As things stand, with Banchero's contract only coming into effect in the 2026-27 season, the Magic are in a relatively comfortable cap position. With an estimated luxury tax bill of only $4.3 million, Orlando shouldn't have too much trouble meeting these demands. The Orlando Magic Have Invested For The Future The concerns associated with the Magic's luxury tax bill in the summer of 2026 are justified. But these are the risks the franchise is expected to take if it intends to compete for a title. The core of Banchero, Wagner, and Suggs has proven itself to be solid. The addition of Desmond Bane in the offseason has only added to the team's overall firepower, increasing their chances of making it out of the East. Given the state of the conference next season, with several teams debilitated and hobbled with injury, the Magic could emerge as clear-cut favorites to advance from the East. This investment in the team's core could be significant in revitalizing a title charge, something the franchise hasn't been able to do in a long time. With all the right pieces in place, the Magic will certainly be a team to keep an eye on next story was originally reported by Fadeaway World on Jul 8, 2025, where it first appeared.
Yahoo
11-07-2025
- Business
- Yahoo
Nuggets rumors: Insider warns fans about luxury tax
The post Nuggets rumors: Insider warns fans about luxury tax appeared first on ClutchPoints. Denver Nuggets ownership has been criticized heavily, particularly over the past few seasons, for a perceived lack of interest in spending money. But one team insider is saying that it might be in the team's best interest, not just the owners', to avoid dipping into the luxury tax this season. Advertisement Although the Nuggets controversially let Kentavious Caldwell-Pope walk in free agency a year ago, the Nuggets paid a little more than $200 million total for their roster this past season, according to Spotrac. The players' deals themselves cost about $182 million, but Denver paid around $20 million in luxury tax, which ranked seventh in the NBA. Following the trade for Cam Johnson, though, ALLCITY's Adam Mares said it could behoove the Nuggets to avoid paying the tax this year. 'Nuggets fans won't love this but it may be wise for the Nuggets to stay below the tax this season and avoid the repeater,' Mares posted on X, formerly Twitter. 'Doesn't mean they are done making moves. But they were almost certainly going to try to get below the tax this year or next.' In subsequent posts, Mares suggested that they could use other 'maneuvers' to keep adding talent while not adding to their payroll, which ESPN's Bobby Marks projected to be less than $2 million below the luxury tax line of $187.8 million. Potential options to stay under the tax this season are waiving and stretching Dario Saric's $5.4 million salary over three seasons, trading the likes of Peyton Watson for a slightly cheaper option, like the Houston Rockets' Cam Whitmore, or, in a perfect world, trading Zeke Nnaji, who will make $8.2 million this year. Advertisement Marks, in response to Mares' initial post, said, 'You have the $5.7M tax ML if needed. But I would be surprised if Denver pays the tax.' While the Kroenke family is always able to pay it if it wants, avoiding the tax this year at least would help in driving down costs in subsequent years as well. Being a 'repeater' in the luxury tax brings with it not only the upfront cost of paying more than most teams, but it also carries even steeper financial penalties for every dollar spent over the tax threshold. This offseason, the Nuggets have already added Johnson (via a trade for Michael Porter Jr.) and the returning Bruce Brown. Related: Why Nuggets' Michael Porter Jr.-Cam Johnson trade makes them 2026 NBA title favorite Advertisement Related: Brian Windhorst ponders Nuggets' Nikola Jokic contract extension risk
Yahoo
10-07-2025
- Business
- Yahoo
Rhode Island Eyes 'Taylor Swift Tax' on Millionaire Homeowners Who Don't Live in Their Mansions Full-Time
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. As much as Taylor Swift would like to sh-sh-shake-it off, if the state of Rhode Island has its way, she and other vacation homeowners who live in their pricey residences part-time will be hit with hefty fees, being dubbed the 'Taylor Swift tax,' according to The state is targeting owners whose homes are assessed at over $1 million, on which to levy a surcharge if their property remains vacant for half of the year. Swift would be a prime example. Her in Watch Hill is valued at $17 million. It could thus be liable to additional taxes of $136,000, according to Don't Miss: Warren Buffett once said, "If you don't find a way to make money while you sleep, you will work until you die." Here's , starting today. $100k+ in investable assets? – no cost, no obligation. Rhode Island has experienced a growing trend of second-home ownership in its vacation towns, which has driven up the cost of housing for locals, according to Rhode Island lawmakers. Expensive summer homes are often left vacant for much of the year after their sales have driven up property prices, forcing local residents out and stripping a town of its community and economy. A luxury tax, proponents contend, will provide funding for affordable housing while persuading second homeowners to spend more time in their residences. Known officially as the non-owner-occupied tax, it is calculated at a rate of $2.50 for every $500 of assessed value above the first million, which means multimillion-dollar homes, such as Swift's, would be liable to heavy taxes on top of those the owner already pays. Trending: It's no wonder Jeff Bezos holds over $250 million in art — There are workarounds, however; either the owner lives there for over 183 days of the year — the legal number of days to constitute full-time residency — or they rent the home out while they are not there, so it is not vacant. The second option seems open to interpretation as owners could let family members or close friends live in the house for a nominal fee termed as 'rent.' If lawmakers approve the proposed tax, homeowners will have until July 2026 to decide whether to take action. 'The proposed tax could have a variety of impacts,' Hannah Jones, senior economic research analyst at said. 'High net worth households may just pay the tax, while other longtime owners may consider short-term leasing of their property to get around the higher tax assessment. It is possible that some owners would sell, but others may exhaust other options before letting go of their high-dollar real estate.' Rhode Island is not unique in taxing vacation homeowners. Montana has a new tax law that charges second-home owners at a higher rate than primary residents. If Rhode Island passes the proposed tax measure, it could encourage other states to follow wealthy homeowners like Taylor Swift leave a 'blank space' or choose to become half-year residents? If they decide to leave en masse, states considering the move might decide that the price of losing its celebrity and high-net-worth residents isn't worth the price of risking its caché, which drives tourism and popularity and feeds the high-end real estate market. One group that isn't impressed with the tax is Rhode Island's realtors, who are fearful that it could limit high-priced transactions. 'Please, don't take from our housing market at the moment to balance the budget for other items; it's going to be detrimental,' Chris Whitten, president of the Rhode Island Association of Realtors, told WJAR-TV. Read Next: Over the last five years, the price of gold has increased by approximately 83% — Investors like Bill O'Reilly and Rudy Giuliani are u. Image: Shutterstock This article Rhode Island Eyes 'Taylor Swift Tax' on Millionaire Homeowners Who Don't Live in Their Mansions Full-Time originally appeared on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
South China Morning Post
05-07-2025
- Business
- South China Morning Post
Malaysia's new ‘luxury' taxes hit the middle class where it hurts
In the calm of his kitchen, Christy Yoong once raised a glass to retirement – good wine, imported cheese and the spoils of a life's work. But as Malaysia 's new tax regime lands with a thud, even these modest pleasures are slipping out of reach. When Prime Minister Anwar Ibrahim unveiled his unexpected tax on imported luxuries in June, he promised the pain would be felt only by the affluent. The intent was clear: shore up government coffers by targeting the better-off. Yet the reality, for many Malaysians like Yoong, is the slow erosion of middle-class comforts as the increased tax burden adds to the rising cost of living. Enacted on Tuesday, the levies on imported luxuries have raised the price of everything from cheese and nuts to cod and king crab. A quick survey of supermarkets around Kuala Lumpur in the aftermath showed that the price of air-flown Norwegian salmon had surged by as much as 20 per cent to 90 ringgit (HK$167) a kilogram, while top grade blueberries from the US now cost up to 240 ringgit per kilogram. The new taxes also extend deep into services once seen as everyday essentials for Malaysia's urban middle class: insurance, financial planning and private education from preschool to university. The breadth of the reforms, announced with little warning, triggered a wave of public anger that forced Anwar into a rare retreat – rolling back taxes on apples and oranges , and beauty services, mere weeks after they were introduced. A Malaysian woman shops for fruit at a market in Kuala Lumpur. New taxes on apples and oranges were rolled back soon after their introduction. Photo: AFP For Yoong, as for millions of middle-class Malaysians, these concessions are cold comfort. 'Life is definitely going to be a pinch. It comes down to making choices,' he told This Week in Asia. 'I'm proud of being Malaysian, but I'm not proud of the government.'
New York Times
01-07-2025
- Business
- New York Times
A salary-cap surprise for 2026-27
NBA free agency is moving fast and furious, and teams are making major moves more newsworthy salary-cap item is the report by ESPN's Bobby Marks that next year's cap will only rise by 7 percent, and not the maximal 10 percent. This is important because the same percentage raise impacts the tax and apron lines. Teams had budgeted for another 10 percent rise, but now must change their projections downward for the luxury tax and aprons by roughly $5 million apiece. There is something inherently funny about the NBA announcing the salary cap and luxury tax levels for the next season hours (or minutes) before free agency begins. Sure, this year, it didn't matter because it's been known for a while that the cap would just jump 10 percent from last year. But this actually has mattered in years past. The NBA and the NBPA spend about a week at the end of the fiscal league year hammering out the Basketball Related Income and getting these numbers. Then, they get it to the teams as soon as they possibly can. It's a very harried process. Every cent matters as teams do their financial planning, and it just happens to not be 100 percent clear until the end. Every team in the NBA had budgeted for this exact cap number. The year-to-year raises in the salary cap have a 10 percent celling under the 2023 CBA, while the league's new TV deal ensured that this year's number would have otherwise blown right pass that limit. The NBA has announced that the salary cap for the 2025-26 season will be $154.647 million. The luxury tax threshold is at $187.895 million. The first apron is at $195.945 million. The second apron is at $207.824 million. The non-taxpayer midlevel exception will be worth $14.104 million, the taxpayer MLE is $5.685 million, and the room MLE is $8.781 million. GO FURTHER NBA free-agency 2025 primer: Key free agents, explaining the aprons and more Getty Images G, Nets Age: 23 BORD$: $23,390,386 Much like D'Angelo Russell, Thomas' value is an extremely divisive topic because he is so dependent on generating tough 2-point jump shots and offers little in the non-scoring categories. However, he was more efficient last season (57.5 true shooting percentage), and his sheer shot-creation volume provides a solid floor for an offense. On a rebuilding team, the key variable in Thomas' favor is that he is still only 23, so theoretically, his best years remain ahead. The other, even more crucial variable is that his cap hold is only $12.1 million. As with Russell above, the Nets will do their other business and then sign Thomas' contract once they have absorbed other contracts into the rest of their cap room. (Note that they may agree on a contract earlier, but they can drag their feet on signing it and submitting it to the league.) Given that Thomas is basically free money against the cap and the Nets have little risk of ending up all the way into the tax, Brooklyn is pretty heavily incentivized to re-sign him to a front-loaded deal with 8 percent annual declines that would make him a favorable value in the final two years of the deal. For example, a four-year, $100 million deal would start at $28.41 million in 2025-26 — likely taking the Nets right to the tax line — but just $21.6 million in 2028-29 for Thomas' age-27 season. Thomas is a restricted free agent, but that distinction borders on irrelevant in a market where nobody else has cap space, and Thomas figures to make more than the nontaxpayer MLE. GO FURTHER LeBron? Harden? Kuminga? The Top 25 NBA free agents for the 2025 offseason A late entrant to the market after taking a buyout from Utah, Jordan Clarkson grades out as a good-minimum get, according to my BORD$ formula. He will have the chance to play on a team that is actually trying to win for the first time in three years. His shooting numbers dove south the past two seasons, and he made just 44.8 percent of his 2s in the 2024-25 season. He's also 33 years old and not exactly renowned for his defense. But Clarkson still provides a jolt of shot creation off the bench and can be hard to stop when he's cooking. Contenders in need of backcourt depth could do a lot worse. Getty Images G, Nets Age: 29 BORD$: $23,898,145 Russell's brand has taken a beating since he didn't fit in L.A. and has been exposed defensively in the postseason. But he's a good scorer and shooter whose shortcomings might be perceived differently if he were cast as a high-usage sixth man rather than a starting point guard. Russell was also outlier bad from 3 last year (a career low 31.4 percent), but that isn't the way to bet going forward. The Nets will have full Bird rights on him in addition to their jillions in cap space; while he doesn't exactly fit Brooklyn's timeline, re-signing him to use as a trade piece either in-season or next summer makes sense from a cap perspective and adds some floor for Brooklyn's offense as the Nets rebuild. Notably, if Brooklyn struggles to find other uses for its cap space, it could sign Russell to a bloated one-year deal with a non-guaranteed second year, one that would effectively operate as a trade exception to use in-season or even next summer. Russell's cap hold is $28 million, but the Nets could pay him the max if they wanted; as long as they set aside $28 million of their cap space for his hold, they can finish their other business and then go as high as they want on Russell. Note that keeping Russell and Cam Thomas (below) on their books would take the Nets down to $40 million in room — still likely plenty for what they have planned this offseason. GO FURTHER LeBron? Harden? Kuminga? The Top 25 NBA free agents for the 2025 offseason F, Grizzlies Age: 24 BORD$: $25,631,532 Aldama is a restricted free agent this offseason. Memphis is likely to bring back Aldama because his low cap hold is a key part of the Grizzlies' strategy. Memphis can park his $11 million salary-cap hold on its sheet and have enough space to renegotiate and extend Jaren Jackson Jr.'s contract, then coming back to re-sign Aldama to a new deal. The tricky part is how much they're willing to pay Aldama when he overlaps at an already strong position on the Memphis roster and other needs lay waiting. The counterargument would be that this is why Memphis has to re-sign Aldama. In addition to the Jackson strategy above, his contract would need to be the matching salary for virtually any starting-caliber player whom Memphis would acquire in-season. I don't think there's enough money out there this summer to hit the BORD$ figure above, unless the Nets get wild. However, something around three years and $60 million to $65 million — especially if it's a front-loaded deal with 8 percent annual declines — would give the Grizzlies enough cap ballast to keep all its trade options open down the line. GO FURTHER LeBron? Harden? Kuminga? The Top 25 NBA free agents for the 2025 offseason Cary Edmondson / Imagn Sources from three different rival teams have linked the Lakers to De'Anthony Melton as we near the official start of free agency. The expectation is that there's strong mutual interest. Melton, 27, missed the majority of last season with a partially torn ACL. Getty Images G, Kings Age: 25 BORD$: $24,714,831 Ellis has a non-guaranteed team option for 2025-26. Ellis is a valuable player on a cheapo contract for at least one more season, making just $2.3 million on the final year of his minimum deal. The Kings can extend his contract for up to four years and $85 million and absolutely should be looking at doing this given his 3-and-D profile. Even if Ellis overlaps some with Zach LaVine, an extended contract for him at $18 million to $20 million a pop should still have positive trade value. (Also, LaVine isn't good enough to be driving long-term strategy for a non-contender.) One other option for the Kings would be to 'decline-and-sign,' essentially throwing a bone to Ellis by declining his $2.3 million option for this year and turning it into a $14.5 million deal via early Bird rights, with a total package of four years and $65 million and a fourth-year player option. That could create a short-term tax issue for the Kings depending on some other roster choices, but long term, this is a much cleaner way to build the team over the coming seasons and removes some tax concerns in 2027 and 2028. GO FURTHER LeBron? Harden? Kuminga? The Top 25 NBA free agents for the 2025 offseason C, Pacers Age: 29 BORD$: $31,329,931 Myles Turner might be the most contentious free-agent negotiation of the summer. Between his unrestricted status, the lack of competing cap-space teams, the Pacers' accomplishments this season, Indiana's potential tax and apron issues if it pays him big money and the fact his deal cannot be extended before he hits free agency … all the ingredients seem to be there for a prolonged staredown that ends with hurt feelings. Turner's BORD$ value is $31 million; while there is no chance of him getting this much in a market with no viable alternate suitors, it does indicate a figure for the Pacers to at least approach if they want him to sign for multiple years. Is three years for $75 million to $80 million fair? Even at $25 million a pop, Turner's next deal would take the Pacers sailing past the first apron and represent a first-ever foray into the tax for Indiana. That's for 2025-26; extending Bennedict Mathurin could push the Pacers to the second apron in 2026-27. Some tough decisions will need to be made at some point about other spots on the roster, but if you're not willing to pay the luxury tax for the franchise's best team in a quarter century, sell it to someone who will. Finally, note that Turner is eligible for a no-trade clause, although I doubt he has the juice to get one. GO FURTHER LeBron? Harden? Kuminga? The Top 25 NBA free agents for the 2025 offseason Jayne Kamin-Oncea / Imagn With free agency a few hours away, the LA Clippers basically have only two spots on the roster that need to be addressed: ball handling and frontcourt help. Those were the areas that president of basketball operations Lawrence Frank outlined days after the Clippers were eliminated by the Denver Nuggets in the West quarterfinals. The 8-man rotation that finished the Clippers-Nuggets series is intact after the team agreed to terms with All-NBA point guard James Harden and veteran reserve forward Nicolas Batum. Both players declined their player options and secured raises for next season. The Clippers also have their last five draft picks who will be under team control: 2025 picks Yanic Konan Niederhauser and Kobe Sanders (a likely 2-way contract), 2024 second round pick Cam Christie, and 2023 picks Kobe Brown and Jordan Miller (nonguaranteed but fully expected to return). Amir Coffey and Ben Simmons are incumbent free agents, and while both were rotation players entering the postseason, they were both out of the mix by the end of the Denver series. In Coffey's case, he didn't play a single minute in the playoffs. Coffey and Simmons are both expected to get better offers elsewhere than they will from the Clippers, with Simmons in particular looking at teams with exceptions; he's not looking for a minimum deal. Veteran Patty Mills is also a free agent, while center Drew Eubanks has a nonguaranteed contract that could be used in a potential trade. What happens with Eubanks is to be determined, but he might be a long shot to make it to Week 1 if the Clippers add another veteran center. Teams can have a maximum of 21 players under contract in the offseason. The Clippers tendered one of last year's two-way contract players, Trentyn Flowers, so he is a restricted free agent who is expected to return. The other two-way contracts that ended last season, Patrick Baldwin Jr. and Seth Lundy, are still on those contracts. The Clippers also added undrafted rookies John Poulakidas and Jahmyl Telfort, though LA likes to wait to officially sign Exhibit 10 contracts while they do other business. So if the Clippers add two players, likely a backup point guard and a backup center, that will put them at 21 players, including Eubanks and the four 2025 rookies. LA has the nontaxpayer midlevel exception to work with, a little over $14 million. Look for them to use that on Harden and Ivica Zubac insurance. Any other positions would signal that a trade would likely be necessary to balance the roster. Adam Glanzman / Getty Images The Warriors' front office will be stationed in Los Angeles at the start of free agency, as has been their recent custom. They quickly pursued De'Anthony Melton at the start of last summer's free agency and, team sources said, they will be on the recruiting trail for veteran help again in the opening hours on Monday afternoon. Team sources have identified a stretch center as a high priority. Many in the league continue to link Al Horford to the Warriors as a preferred target. If the Warriors use the taxpayer midlevel exception (projected at around $5.7 million) on Horford or another free agent, they'll be hard-capped at the second apron, currently projected at $207.8 million. The Utah Jazz will agree to buy out Jordan Clarkson's contract, a league source confirmed to The Athletic. Clarkson, the 2021 NBA Sixth Man of the Year, averaged 16.2 points and 3.7 assists per game last season. The 33-year-old was slated to make $14.3 million next season. Clarkson and Collin Sexton, who was traded to Charlotte yesterday, were never going to be on the Jazz roster next season. The Jazz were moving off them no matter what. Utah wants to provide more minutes for youngsters Isaiah Collier, Keyonte George, Cody Williams, Brice Sensabaugh and rookie Walter Clayton Jr. Getty Images F, Warriors Age: 22 BORD$: $24,030,341 OK. ... Let's talk about this. Jonathan Kuminga represents the fundamental limitation with statistically evaluating free agents: You can only go by what contribution they made to their current team, but what you're trying to solve for is the player's value to their next team. Most of the time, those two numbers are close enough that the valuation problem isn't particularly challenging. However, for odd players or odd systems, the degree of difficulty multiplies. In Kuminga's case, we might have a particularly notable example of that problem: An odd player and an odd system — magnified, in this case, by the player not fitting the system. Golden State's read-react, pass-and-cut system has made other tunnel-visiony on-ball shot-creators look much worse than they were before or after (see Russell, D'Angelo; Schröder, Dennis), and Kuminga may be another. Alas, we can't be totally sure, because Golden State is the only place he's ever played. Our entire body of work for evaluating Kuminga is in the context of his square-peg game and Golden State's round hole of an offense. To explain this statistically, there is a lot in Kuminga's track record that suggests maybe he just isn't all that good. Most notably, his career shooting marks are 33.2 percent from 3 and 69.6 percent from the line. He's just OK as a defender, seems to have poor instincts for reading the game at both ends and is prone to spectacular bouts of dribble blindness. The Warriors have pushed him to be a beast on the glass, but historically, players rarely change their stripes in this realm, and his rebound rate has stayed right around 10.0 percent his whole career — fine for a combo forward but unremarkable. GO FURTHER LeBron? Harden? Kuminga? The Top 25 NBA free agents for the 2025 offseason The Phoenix Suns have officially announced the Mark Williams trade. The Suns traded Vasa Mičić, the draft rights to Liam McNeeley and a 2029 first-round pick (worst of Cleveland, Minnesota and Utah) for Williams while also receiving their 2029 second-round pick back. Page 2
