Tom Brady Gives MVP Award Truck To Malcolm Butler, Chevy Helps Him Avoid Paying Gift Tax
Tom Brady just got an assist from Chevrolet in his bid to give his Super Bowl MVP prize away to Malcolm Butler.
After Brady was named MVP, he announced that he would be giving the prize that came along with it — a new, fully loaded Chevy Colorado truck — to Butler instead. Though Brady threw for 328 yards and four touchdowns, it was the rookie cornerback who snagged the game-clinching interception with less than 20 seconds remaining and the Seattle Seahawks on the 1-yard line.
Tom Brady had announced his intention to give Butler the truck instead.
“I would love to give him the truck. I would love to do that,” Brady said.
“I’m going to figure out how to make that work.”
But Brady was hit with a quandary. Because the truck was to be given to Brady first, he would have to pay taxes on it. Forbes explained.
“The truck is considered a taxable prize under the Internal Revenue Code, section 74. It’s taxed at Tom Brady’s marginal income tax rate of 39.6 percent. According to TrueCar.com, the fair market value of a 2015 Chevy Colorado is in the neighborhood of $34,000. This is likely an understatement, since it includes none of the options that Chevy no doubt added to the vehicle. So Brady will pay ($34,000 x 39.6 percent) in taxes, or $13,500 in income tax on this prize.”
After Tom Brady’s big tax bill made the news, Chevrolet stepped in to help fix the situation. The car maker announced that it would be giving the truck directly to Butler, leaving Brady tax-free.
The gift will likely mean a lot more to Malcolm Butler than it could to Brady. The rookie made $585,000 this season, which included the $165,000 bonus that Patriots players got for reaching the postseason. Brady has made $150 million for his career, and his wife, Gisele Bundchen, adds another nine figures to their net worth.
This is not the first time that Tom Brady has given away an MVP award prize. He also donated the truck from his Super Bowl XXXVIII MVP to his high school, auctioning it off to raise close to $365,000 for the school.
[Image via L.A. Times]
