California Determines NBA Player a California Resident and Liable for California Income Tax – Los Angeles Income Tax Planning and Income Tax Litigation Attorney Bruce Givner

by Bruce Givner on November 8, 2013

The California Franchise Tax Board (FTB) actively audits any tax return where a resident claims they have left California and now reside in another state. If caught, California taxes will be assessed, as well as interest and penalties. Just ask former NBA player, Jerome James.

Jerome James was a professional basketball for almost 15 years, during which he played for the Sacramento Kings, Seattle Supersonics, and New York Knicks. Though he grew up and went to school in Florida, after he was drafted by the Kings in 1998 he rented a house in Sacramento. From 1998 through 2005, James then lived in California on and off in either property that he rented or a home he purchased.

1. December 1998 – May 1999. Rented house in Sacramento.
2. July 1999 – October 2000, Summer of 2002. Purchased home in Sacramento.
3. May 2003 – March 2004. Purchased a second home in Sacramento.

In March 2004 when he was acquired by the Supersonics, James sold his California homes and purchased a house in Seattle.

Through 2002, James filed California income tax returns. Through 2004, in addition to his California homes, James also registered his cars and boats in California, maintained a California driver’s license, and kept his financial accounts in California. James’ credit card bills also showed the pro basketball player spent his off-seasons in California.

After an audit, the California State Board of Equalization determined that James’ absences from California to play for other teams were temporary since his actions showed he always intended to return to California. As such he was a resident of California for 2003 and January through March 23, 2004 when he bought a home in Seattle and moved his financial and personal accounts to Washington. Appeal of Jerome James.

Givner & Kaye focuses on sophisticated income tax planning and compliance, tax litigation and procedure, estate planning, and asset protection plans for individuals and businesses in Beverly Hills, Calabasas, West Los Angeles, Hollywood, and other areas of Los Angeles, Orange, Ventura, San Bernardino, Riverside and Santa Barbara Counties. Call Los Angeles Estate Planning and Asset Protection Plan Attorneys Givner & Kaye at (310) 207-8008 today.

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