Mike Scully - Managing Director - Helping Athletic Departments Eliminate Excise Tax
Fort Myers, FL - Baycrest Consultants
Mike Scully, Managing Director and former Illini & NFL Lineman provides a sample of how they're helping Athletic Departments around the country.
As we kick off the College Football season, we are working with University Presidents, Chancellors and Athletic Directors to change their respective school’s Athletic Departments financial trajectory.
Tired of handing over 21% excise tax on your top executives’ pay? This quick whiteboard hack shows how a nonprofit health system can turn a $1 million/year tax bill into a $30 million asset in five years:
Endless Money Loop
• Current cost: 21% tax on $5 million annual salary = $1 million/year
• New approach:
Pay $1 million salary (eliminate excise tax) save $840,000 per year in excise tax
Defer the remaining $4 million/year as a “Max Cap” loan into a life‐insurance policy
Employee can take up to 60% of loan out tax free after 90 days
• 5-year commitment:
University will recoup $20 million in loan principal after 15 years or passing of the employee
Save $840,000/year in excise taxes = $4.2 million
Total benefit to the university: $24.2million
For a free consult, reach out to Mike Scully at mscully@baycrestconsultants.com
NACDA AUU AFCA
Tired of handing over 21% excise tax on your top executives’ pay? This quick whiteboard hack shows how a nonprofit health system can turn a $1 million/year tax bill into a $30 million asset in five years:
Endless Money Loop
• Current cost: 21% tax on $5 million annual salary = $1 million/year
• New approach:
Pay $1 million salary (eliminate excise tax) save $840,000 per year in excise tax
Defer the remaining $4 million/year as a “Max Cap” loan into a life‐insurance policy
Employee can take up to 60% of loan out tax free after 90 days
• 5-year commitment:
University will recoup $20 million in loan principal after 15 years or passing of the employee
Save $840,000/year in excise taxes = $4.2 million
Total benefit to the university: $24.2million
For a free consult, reach out to Mike Scully at mscully@baycrestconsultants.com
NACDA AUU AFCA
Comments
Post a Comment