Rory McIlroy suffered $1.7M loss the moment he won | Sports News

Rory McIlroy would have confronted a substantial tax invoice following his Masters victory final 12 months.

After an 11-year drought, the 36-year-old lastly secured one other main and accomplished the Grand Slam by claiming a Green Jacket. McIlroy made it tough for himself, although. A bogey whereas in the lead on the 18th gap compelled a playoff with Justin Rose. The Northern Irishman managed to prevail over his Ryder Cup teammate and dropped to his knees in disbelief.

Not solely did McIlroy seize the main at Augusta National, however he collected a substantial $4 million prize as nicely. Meanwhile, golf icon Fred Couples had an emotional response to Tiger Woods’ DUI arrest.

However, stringent tax laws would have seen McIlroy forfeit almost half of that quantity. The $4M would have been subject to federal and Georgia state tax, which means he would have needed to pay roughly $1.7 million.

Tax knowledgeable Paul Barham from Forvis Mazars defined it to Express Sport. “Any prize money earned will be subject to US federal tax, the top rate of which is still 37 percent,” he mentioned. “Golfers will also have to pay state tax in Georgia at 5.39 percent.

“The U.S tax might be paid by all the golfers enjoying at Augusta regardless of the place they’re tax resident and if they’re a tax resident in the U.S, they should not pay tax on this prize money in every other nation.”

At the time, McIlroy’s primary residence was in Florida, and he would have been classified as a U.S. resident. This would make him exempt from additional U.K. taxes. George Cannon, a tax advisor for professional golfers at Kreston Reeves, added: “As a non-U.Ok. resident for tax functions, any winnings Rory receives in relation to abroad performances won’t be taxable in the U.Ok. however might be subject to the related abroad taxes.”

Notably, McIlroy and his family have since relocated to the U.K., settling into a newly constructed mansion in Wentworth, Surrey. McIlroy spoke about the move ahead of last year’s Scottish Open, a tournament widely regarded as a warm-up event in the build-up to The Open Championship.

“We got here back a few weeks in the past and moved into our new home in Wentworth and been since making an attempt to settle in and it is wonderful what two weeks of a bit of detachment can do for you, and sitting there being together with your own ideas for a whereas,” he advised The Telegraph.

“Yeah, it has been good to have this time to replicate and likewise to rekindle my pleasure and enthusiasm for the relaxation of the 12 months.

“Obviously we have this week in Scotland and then a massive week next week (for the Open) in Portrush.”

McIlroy, of course, nonetheless maintains his Florida residence, which proves particularly advantageous on condition that many of the season’s early tournaments are held in the Sunshine State.