Quote:
Originally Posted by paulosfm
Anyone notice the house was sold to The Jordan Family Gift Trust? It was not sold to Jordan. Yes, he will live there. Can someone, maybe a CPA, explain the tax benefits of the Trust owning the property vs MJ? I am sure, looking at his real estate investments, they will pay big dividends down the road. The Trust got a great deal. My heart goes out to Doug Herbert. I know he and his wife wanted out of the house because of all the pain (loss of his two sons in 2008) associated with living there. It was a win-win for MJ and Herbert, even though Herbert took a beating on the sale price. Maybe the money saved on the deal would give MJ some discretionary money to change the CATS brand over to the Hornets.  |
MJ did not buy the house from Herbert. It was a foreclosure. Herbert tried to sell it, but he probably couldn't sell it for enough money to cover his mortgage so he walked away and gave it to the bank. I don't know the details of how it went back to the lender, but the bank was the seller.
I am not a CPA and not familiar with the structure of the Jordan Family Gift Trust, but it has something to do with taxes...
The gift trusts I am familiar with, you (or MJ) make a donation to the gift trust which is a tax deduction in the year you make the donation. Then the gift trust invests the money as you direct, and it distributes funds to charity. I didn't know you could direct a gift trust to invest in real estate, but hey, why not? If that is what is going on here, then MJ will have to rent the house from the gift trust when he lives there. I would guess (and here is where a CPA would help, and someone who really knows what is going on would help even more) that MJ would prefer to be a resident of Florida for tax purposes - where he has a property, so if he doesn't actually own a house in NC but rents a place when he is here, it might be easier to establish residency in Florida. Pure speculation on my part!
If I see him, I will ask him. on 2nd thought, no I won't.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
