- Days left
Recently, former NFL start Michael Vick filed for bankruptcy while sitting in a Kansas prison. In 2006, Vick made almost $15 million. Now he makes next to nothing working in prison. He bankruptcy filing shows $16 million in assets, but over $20 million owed to creditors. Vick wasted a whopping $18 million over two years, and forensic accountants had to be hired to find out just where all the money went.

What did with the money: Invested in bad business deals like a car rental company, a liquor store, and a restaurant, hired a multitude of financial advisers, gave money away to family members, bought multiple houses and cars, gave extravagant gifts to others, and wrote out lots of checks to "cash." Among the things he has lost: homes, farms, yachts, a bunch of vehicles, and a race horse. The Atlanta Falcons want millions of dollars back from him, and the taxing authorities want $1 million from him for unpaid taxes and interest.

So was it all worth it? Was it worth throwing away a lucrative career to torture some dogs for sport? I suspect not. Vick intends to play football when he gets out of prison, with his release scheduled for July 20. He has told the bankruptcy court he thinks he can still make a lot of money as an NFL quarterback. I'm not sure there's any team out there willing to take a chance on him. He hasn't played in a long time, and may not be physically ready. Even if he is, what team wants the negative reaction from fans for bringing him on?

Tracy L. Coenen, CPA, MBA, CFE performs fraud examinations and financial investigations for her company Sequence Inc. Forensic Accounting, and is the author of Essentials of Corporate Fraud.

Increase your money and finance knowledge from home

How much house can I afford

Home buying 101, evaluating one of your most important financial decisions.

View Course »

How to Buy a Car

How to get the best deal and buy a car with confidence.

View Course »

TurboTax Articles

Infamous Tax Crimes

Although most Americans fill out their tax returns diligently and honestly, not all taxpayers are as respectful of the law. Some wealthy taxpayers cheat because they feel they already pay more than their fair share of taxes, while some regard the entire tax system as unconstitutional. Regardless of the reason, it's big news when the rich and famous are convicted of tax crimes. You're likely to know at least one or more of the famous names on this list of notorious tax cheats.

Cities with the Lowest Tax Rates

The total amount of tax you pay reaches far beyond what you owe the federal government. Depending on where you live, most likely you're required to pay additional taxes, including property and sales tax. The disparity between the amount of tax you pay in a low-tax city and that in a high-tax city can be dramatic. Living in any of these 10 cities could save you a bundle, although the exact amount may fluctuate based on your income and lifestyle choices.

Cities with the Highest Tax Rates

Much ado is made in the press about federal tax brackets, but cities can carry a tax bite of their own. Even if you live in a state that has no income tax, your city may levy a variety of taxes that could eat away the entire benefit of living in an income tax-free state, including property taxes, sales taxes and auto taxes. Consider all the costs before you move to one of these cities, and understand that rates may change based on your family's income level.

Great Ways to Get Charitable Tax Deductions

Generally, when you give money to a charity, you can use the amount of that donation as a deduction on your tax return. However, not all charities qualify as tax-deductible organizations. While there are many types of charities, they must all meet certain criteria to be classified by the IRS as tax-deductible organizations. There are legitimate tax-deductible organizations in many popular categories, such as those listed below.

A Freelancer's Guide to Taxes

Freelancing certainly has its benefits, but it can result in a few complications come tax time. The Internal Revenue Service considers freelancers to be self-employed, so if you earn income as a freelancer you must file your taxes as a business owner. While you can take additional deductions if you are self-employed, you'll also face additional taxes in the form of the self-employment tax. Here are things to consider as a freelancer when filing your taxes.

Add a Comment

*0 / 3000 Character Maximum