Why pro athletes may lose a fortune because of the new tax law

“One of my players makes $2 million a year, and it will cost him $80,000 more now because he can’t deduct state taxes, agent fees, workout clothes, meals and entertainment, and his cellphone,” says Steven Goldstein, a CPA with Grassi and Co. in New York who works with over a dozen professional athletes and celebrities.

And players who make tens of millions of dollars a year will potentially pay hundreds of thousands more a year in taxes.

The reason athletes are taking this hit is because individuals can no longer make itemized deductions for state and local taxes or miscellaneous itemized deductions for work-related expenses and investment fees. And these changes, especially the latter, will cost pro athletes more than most people.