News Center

Tax Time Tips for the Pros

January 9th, 2012

As the New Year is here, it’s time to start accumulating the data you will need to provide to your accountant. Whether you’re a player in the NFL, NBA, MLB, NHL, MLS, WNBA, CFL, racing, boxing, overseas, or other pro sports, you have unique deductions that you can take due to your profession. Some tips to help save you money:

1. Find a qualified, credentialed tax preparer (such as a Certified Public Accountant, “CPA”), who specializes in working with professional athletes.

2. Communicate your situation, ask questions, and be open and honest with your tax professional.

3. Provide as much documentation as you can to your tax pro.

Follow these tips, and you’ll be well on way to saving yourself money. Good luck to you.

For more information or to speak with a tax professional, please call Dr. Karaffa at (804) 363-9684 or visit us at www.prosportcpa.com.

John Karaffa Again Recognized as “Super CPA”

November 1st, 2011

Virginia Business has again recognized Dr. John Karaffa, the Founder of ProSport CPA, as one of its 2011 “Super CPAs” in the categoy of Individual Taxation. Virginia Business identifies the “best of the best” of the Certified Public Accountant (CPA) profession through this special program that highlights Virginia’s top CPAs for their contributions to their profession and to the prosperity of the Commonwealth of Virginia. Dr. Karaffa was a winner of the same award in 2010. The full results were released in the November edition of Virginia Business.

Dr. Karaffa’s company, ProSport CPA, is a tax, accounting, and financial education firm that specializes in helping professional athletes. More information is available at www.prosportcpa.com.

Dr. Karaffa Published in Virginia Business and Disclosures Magazines

September 19th, 2011

Virginia Business, with a readership of over 77,000 business decision makers across Virginia, and Disclosures, the official publication of the Virginia Society of CPAs with a readership of 10,000, each published an article recently penned by Dr. John Karaffa, the Founder of ProSport CPA. The article was published in the July/August edition of Disclosures and the September edition of Virginia Business online.

The article, Build Your Niche Practice with Preparation, Introspection, and Opportunity, provided insight to aspiring small business owners on how to successfully live out their dreams. The article profiled how the author combined his professional career and personal interests into a successful sports accounting niche practice and provided guidance on how to build a successful business.

Dr. Karaffa’s company, ProSport CPA, is a local tax, accounting, and financial education firm that specializes in helping professional athletes. More information is available at www.prosportcpa.com.

Links to the two articles are below: 

http://disclosures.vscpa.com/DigitalAnywhere/viewer.aspx?id=8&pageId=14

http://www.virginiabusiness.com/index.php/opinion/article/build-your-niche-practice-with-preparation-introspection-and-opportunity/314066/

FORUM Magazine Publishes Article by Dr. John Karaffa

May 5th, 2011

John Karaffa Featured in Strayer University’s FORUM: Advancing Academic Discourse Winter/Spring 2011 Edition

An article written by Dr. John Karaffa, President and Founder of ProSport CPA, was published in the Winter/Spring 2011 edition of Strayer University’s magazine, Forum: Advancing Academic Discourse. Forum is the semiannual academic newsletter of Strayer University. The mission of Forum is to provide a venue for Strayer University faculty and academic administration to discuss issues affecting adult learners and share experiences that further professional growth.

The article written by Dr. Karaffa provided recommendations to Leaders in the National Football League, NFL Players Association (NFLPA), and NFL Teams to help them increase NFL player awareness about making better financial decisions. Recommendations revolved around the categories of (1) disabilities and injuries, (2) NFL pensions, (3) careers after football, and (4) financial education.

Dr. Karaffa’s company, ProSport CPA, is a local tax, accounting, and financial education firm that specializes in helping professional athletes. More information is available at www.prosportcpa.com.

The full article is attached Strayer University Forum Winter-Spring 2011

Professional Athlete Deductions Can Provide Substantial Tax Relief

February 12th, 2011

With professional athletes facing overall tax rates in excess of 40%, appropriately utilizing all available Internal Revenue Service (IRS) tax deductions is a necessity. Professional athletes face unique costs due to their profession. Fees for agents, trainers, advisors, and union dues are all tax-deductible, as well as many other expenditures that are often overlooked.

The timing of taking certain deductions is also very important and an important element of optimal, effective tax planning. A year-end tax check-up with a tax accountant who specializes with professional athlete taxation is highly recommended.

With the big dollars involved, it is imperative that professional athletes receive all the appropriate credit from deductions that they are due on their taxes.

For more information or to speak with a tax professional, please call Dr. Karaffa at (804) 363-9684 or visit us at www.prosportcpa.com.

Dr. John Karaffa Shares Financial Tips with NFL Prospects

February 3rd, 2011

 

Dr. Karaffa Sharing Financial Tips with NFL Prospects

College professor and renowned personal finance expert, Dr. John Karaffa, recently spoke with participants of this year’s NFL combine training program at Tom Shaw Performance Enhancement in Orlando, Florida. Dr. Karaffa shared his experiences as a former professional athlete, tax accountant, and advisor to professional athletes with the audience that included over 20 professional football prospects. The 45-minute session provided the future pros with valuable financial guidance derived from former NFL greats on what to do and what not to do as they enter the professional ranks. Dr. Karaffa’s research with former NFL players resulted in a series of practical financial tips that help professional athletes make better financial decisions.

Tom Shaw Performance Enhancement is training program hosted at Disney’s Wide World of Sports. Coach Tom Shaw helps college players improve their ”speed, power, agility, quickness, and quickness” prior to attending the National Football League’s scouting combine. Coach Shaw, a former coach for the New England Patriots’ SuperBowl Championship teams, also trains current NFL players, and past participants of his program include 10 SuperBowl MVPs, 122 NFL first round draft picks, and 8 #1 picks.

For more information about financial education seminars tailored to meet the needs of professional athletes, please call Dr. Karaffa at (804) 363-9684 or visit us at www.prosportcpa.com.

Future NFL Pros Learn about their Personal Finances

Financial Advisors for Pro Athletes Need Top-Notch Accountant Allies

January 15th, 2011

Tax laws are ever-changing and complex. For professional athletes, taxes play a huge role and they must be accounted for comprehensive financial plans are being developed. Financial advisors, who work with professional athletes, can grow their businesses by partnering with strong accountants who also specialize in serving this unique niche.

As regulatory agencies and brokerage firms scrutinize financial advisors and limit their dealings with clients, advisors find it more necessary and fruitful to ally themselves with quality accountants. Certified Public Accountants (CPAs) can often offer services that the financial advisor is not allowed or adept to provide to professional athletes.

Accountants, who specialize in providing tax, accounting, and financial education services to professional athletes, can be a valuable member of the team by bolstering the financial advisor’s position with the athlete, acting as a sounding board for ideas, and sharing best practices.

For more information on how to team up successfully or to speak with a tax professional, please call Dr. Karaffa at (804) 363-9684 or visit us at www.prosportcpa.com.

Tax “Doctor” Offering 2nd Opinions to Professional Athletes

December 3rd, 2010

Dr. John Karaffa, owner of ProSport CPA and a college professor, is offering professional athletes free tax check-ups. These comprehensive reviews are simple, effective, and often result in uncovering additional refunds.

Many good tax accountants are available; however, finding good tax accountants who focus on serving professional athletes is tough. Professional athletes face unique tax circumstances that require specialized knowledge in several key areas:

-       Sports-specific deductions,

-       Various types and sources of income, and

-       Multiple city, state, and foreign tax complexities.

In the same way you consult a doctor for a second opinion to have more confidence in your diagnosis; tax check-ups give you more peace of mind and possibly gain you money.

For more information or to speak with a tax professional, please call Dr. Karaffa at (804) 363-9684 or visit us at www.prosportcpa.com.

Overseas Professional Athletes Facing Increased IRS Scrutiny

November 3rd, 2010

Helio Castroneves, three-time winner of the Indianapolis 500 and professional race-car driver, was embroiled in a long, public battle with the Internal Revenue Service over his income taxes. The Castroneves case puts other professional athletes on notice to ensure that they remain in compliance with their U.S. tax filing obligations. All U.S. citizens and residents have a U.S. tax reporting obligation, irrespective of the geographical source of their income. Professional athletes overseas are not exempt.

Whether it is an American in the Canadian Football League (CFL) or a basketball player playing in the German pro leagues, U.S. tax returns (and host country taxes) must be filed. And in this day and age, when the public often knows how much a player earns, pro athletes can’t hide. IRS agents can access Twitter, Facebook, and overseas team rosters, just like anyone else. A positive aspect of filing is that there are often credits a player can claim, and the potential for a tax refund exists. So, it can pay to file.

For more information or to speak with a tax professional, please call Dr. Karaffa at (804) 363-9684 or visit us at www.prosportcpa.com.

Tax Deadline Readily Approaching for Professional Athletes

October 3rd, 2010

Professional athletes often need to postpone the filing date of their U.S. tax returns due to their playing seasons, travel schedules, and other obligations. For those individuals who filed U.S. federal extensions (Forms 4868) by April 15, 2010, their tax returns were extended to October 15. A couple points to keep in mind with regards to extended due dates:

 -       The extension of time to file does not extend the due date for payment,

-       Filing a federal extension does not guarantee that a state will accept it, and

-       There’s no official extension form to get more time past October 15.

Therefore, for those who have not filed their tax returns, quick action is needed.

For more information or to speak with a tax professional, please call Dr. Karaffa at (804) 363-9684 or visit us at www.prosportcpa.com.