GIVE AND TAKE

IT WILL be years before the full impact of the new federal tax plan is known, but one thing is certain: High-earning athletes will feel a difference in their wallets. Most will benefit from cuts for top earners but will also lose several common deductions. This will be a particularly complex tax season, especially for athletes switching teams. How they come out will largely depend on where they play. With the help of CPA to the stars Jarrett Perry, here's how athletes could be impacted in 2018.

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TOP INCOME BRACKET TAX CUT

The reduction in the top federal marginal tax rate (from 39% to 37.4%), means substantial savings for players in that bracket. Someone making $35.5 million—which is what Clayton Kershaw pulls down—could save as much as $568,000.

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SALT DEDUCTION CAP

Residents of areas that charge state and local taxes (SALT), such as California, can no longer deduct most of those payments from their federal taxable income. As a result, Kershaw could lose as much as $1.3 million.

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CHANGE IN STATE TAX RATES

It's not a new phenomenon, but it still holds true: Getting traded can have perks. Ex-Clipper Blake Griffin is moving from the state with the highest state income tax bracket (13.3%) to Michigan, with a flat 4.25% rate. That could save him up to $1.6 million.

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EXPENSES NOT DEDUCTIBLE

The new Piston's savings would be partially offset by unreimbursed outlays like training expenses and union dues that are no longer deductible. An athlete pulling in the median NBA salary with $100,000 worth of such expenses will pay $19,000 more.

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CHANGE IN STATE TAX RATES

On the flip side, consider Giancarlo Stanton. After eight years in tax-free Florida, the new Yankee will now be spending a lot more time in New York, where the top income tax bracket is 8.8%. That could cost him $1.1 million this season.

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AGENT FEES NO LONGER DEDUCTIBLE

Stanton will take an additional hit by the scrapping of unreimbursed expense deductions, most significantly agent fees. With a contract as big as Stanton's, that could cost as much as $250,000 in extra taxes.

Financial impact:

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