Tony Gonzalez trims price of Beverly Hills home to $28 million

For anyone doing some last-minute Christmas shopping, NFL legend Tony Gonzalez and his wife, former “Beat Shazam” DJ October Gonzalez, just trimmed the price of their Beverly Hills mansion to $28 million.

The couple paid $7.1 million for the property in 2016 and razed the 1950s traditional-style house immediately, erecting a Georgian-inspired manor in its place over the next four years. It was finished last winter, and they listed it for sale at $30 million over the summer.

At 12,855 square feet, the showplace is nearly three times the size of the house it replaced. In addition to the two-story mansion, there’s a swimming pool with a spa, a pool house with a gym, a subterranean garage with room for eight cars and a lighted tennis court.

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Offered fully furnished, the floor plan kicks off with a dramatic 24-foot entry. Farther in, common spaces include a study with built-in cabinetry and a chef’s kitchen with a large marble island. Walls of glass line the living room and dining area, and the custom pub adds floor-to-ceiling wine storage and an eye-catching limestone fireplace. For those home-schooling during the pandemic, there’s also a full-size classroom.

The owner’s suite sits upstairs. One of seven bedrooms and 12 bathrooms, it expands to a massive balcony overlooking the patios and lawns in the backyard. The grounds cover about three-quarters of an acre.

An Orange County native, Gonzalez was a standout at Huntington Beach High School before attending UC Berkeley, where he played football and basketball. During his prolific 17-year career in the NFL, the 44-year-old tight end played for the Kansas City Chiefs and Atlanta Falcons, making 14 Pro Bowl teams and being inducted into the Pro Football Hall of Fame in 2019.

Michelle Graci of Rodeo Realty Beverly Hills and Bob Hurwitz of Hurwitz James Co. hold the listing.

Source: latimes.com

8 Tax Tips for Gambling Winnings and Losses

An estimated 23.2 million people will plunk down a bet on the Super Bowl this year. And, of course, wagers aren’t just made on the outcome of the game between the Kansas City Chiefs and the Tampa Bay Buccaneers—you can bet on the length of the national anthem, whether the coin toss will come up heads or tails, which songs will be played at halftime, the color of the Gatorade dump on the winning coach and so much more. It’s a great day for serious and casual gamblers alike!

However, if you’re lucky enough to win some cash from a smart bet, don’t forget that Uncle Sam wants his cut, too. So, before you run out and spend your new-found fortune, here are 8 things to remember about taxes on gambling winnings and losses.

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You Have to Report All Your Winnings

picture of man pulling in a pile of money on a tablepicture of man pulling in a pile of money on a table

Whether it’s $5 or $5,000, from an office pool or from a casino, all gambling winnings must be reported on your tax return as “other income” on Schedule 1 (Form 1040), line 8. If you win a non-cash prize, such as a car or a trip, report its fair market value as income.

And, please, make sure you report all your gambling winnings. If you won $500, report $500. The IRS isn’t hunting down small-time winners, but you still don’t want to think of yourself as a tax cheat.

2 of 8

You Might Get a Form W-2G

picture of tax form where you would attach form w-2gpicture of tax form where you would attach form w-2g

Generally, you’ll receive an IRS Form W-2G if your gambling winnings are at least $600 and the payout is at least 300 times the amount of your wager. The thresholds are $1,200 for bingo or slot machine winnings, $1,500 for keno winnings and $5,000 for poker tournament winnings (and the payout doesn’t have to be 300 times the wager for these types of winnings). Your reportable winnings will be listed in Box 1 of the W-2G form.

If a W-2G is required, the payer (sports betting parlor, casino, racetrack, etc.) will need to see two forms of identification. One of them must be a photo ID. You’ll also have to provide your Social Security number or, if you have one, an individual taxpayer identification number.

In some cases, you’ll get the W-2G on the spot. Otherwise, for this year’s winnings, the payer must send the form to you by January 31, 2022. In any event, if your bet was with a casino, we’re fairly certain you’ll get the W-2G. But if your bet was just a friendly wager with a friend … well, don’t count on it.

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Withholding Might Be Required

picture of income tax form, calculator, pen and a pair of glassespicture of income tax form, calculator, pen and a pair of glasses

Generally, if you win more than $5,000 on a wager and the payout is at least 300 times the amount of your bet, the IRS requires the payer to withhold 24% of your winnings for income taxes. (Special withholding rules apply for winnings from bingo, keno, slot machines and poker tournaments.) The amount withheld will be listed in Box 4 of the W-2G form you’ll receive. You’ll also have to sign the W-2G stating, under penalty of perjury, that the information listed on the form is correct.

When you file your 1040 next year, include the amount withheld as federal income tax withheld (line 25c on your 2020 tax return). It will be subtracted from the tax you owe. You’ll also have to attach the W-2G form to your return.

Again, this is what to expect when you plunk down a bet at a casino or with some other legally operated gaming business … don’t expect your buddy to withhold taxes from the money you win from a friendly wager (although, technically, he or she should).

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Your Losses Might Be Deductible

picture of unhappy gamblers at casino tablepicture of unhappy gamblers at casino table

Did you have a bad night at the blackjack table or pick the wrong team to win? There’s a silver lining if you lose a bet or two—your gambling losses might be deductible. (Gambling losses include the actual cost of wagers plus related expenses, such as travel to and from a casino.)

There are a couple of important catches, though. First, unless you’re a professional gambler (more on that in a second), you have to itemize in order to deduct gambling losses (itemized deductions are claimed on Schedule A). Since the 2017 tax reform law basically doubled the standard deduction, most people aren’t going to itemize anymore. So if you claim the standard deduction, you’re out of luck twice—once for losing your bet and once for not being able to deduct your gambling losses.

Second, you can’t deduct gambling losses that are more than the winnings you report on your return. For example, if you won $100 on one bet but lost $300 on a few others, you can only deduct the first $100 of losses. If you were totally down on your luck and had absolutely no gambling winnings for the year, you can’t deduct any of your losses.

If you’re a professional gambler, you can deduct your losses as business expenses on Schedule C without having to itemize. However, a note of caution: An activity only qualifies as a business if your primary purpose is to make a profit and you’re continually and regularly involved in it. Sporadic activities or hobbies don’t qualify as a business.

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Report Winnings and Losses Separately

picture of sports betting tickets and cashpicture of sports betting tickets and cash

Gambling winnings and losses must be reported separately. Say, for example, you made four separate $100 bets on the Super Bowl. If one of those bets came through for a $500 payout, you must report the full $500 as taxable income. You can’t reduce your gambling winnings ($500) by your gambling losses ($400) and only report the difference ($100) as income. If you itemize, you can claim a $400 deduction for your losses, but your winnings and losses must be handled separately on your tax return.

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Keep Good Records

picture of files in a filing cabinetpicture of files in a filing cabinet

To help you keep track of how much you’ve won or lost over the course of a year, the IRS suggests keeping a diary or similar record of your gambling activities. At a minimum, your records should include the dates and types of specific wagers or gambling activities, name and address/location of each casino you visited, names of other people with you at each casino, and the amounts you won or lost.

You should also keep other items as proof of gambling winnings and losses. For example, hold on to all W-2G forms, wagering tickets, canceled checks, credit records, bank withdrawals, and statements of actual winnings or payment slips provided by casinos.

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Audit Risks May Be Higher

picture of tax form with the word "audit" stamped on itpicture of tax form with the word "audit" stamped on it

If you receive a W-2G form along with your gambling winnings, don’t forget that the IRS is getting a copy of the form, too. So, the IRS is expecting you to claim those winnings on your tax return. If you don’t, the tax man isn’t going to be happy about it.

Deducting large gambling losses can also raise red flags at the IRS. Remember, casual gamblers can only claim losses as itemized deductions on Schedule A up to the amount of their winnings. It’s a slam dunk for IRS auditors if you claim more losses than winnings.

Be careful if you’re deducting losses on Schedule C, too. The IRS is always looking for supposed “business” activities that are really just hobbies.

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State and Local Taxes May Apply

picture of journal with "State and Local Income Tax" written in itpicture of journal with "State and Local Income Tax" written in it

If you look carefully at Form W-2G you’ll notice that there are boxes for reporting state and local winnings and withholding. That’s because you may owe state or local taxes on your gambling winnings, too.

The state where you live generally taxes all your income—including gambling winnings. However, if you travel to another state to plunk down a bet, you might be surprised to learn that the other state wants to tax your winnings, too. And they could withhold the tax from your payout to make sure they get what they’re owed. You won’t be taxed twice, though. The state where you live should give you a tax credit for the taxes you pay to the other state.

You may or may not be able to deduct gambling losses on your state tax return. Check with your state tax department for the rules where you live.

Source: kiplinger.com

NFL Cribs: Checking Back In on the Homes of the Kansas City Chiefs

They’re back. The Kansas City Chiefs smashed the hopes of the Buffalo Bills to reach Super Bowl LV. Now they’re looking for an elusive repeat in the big game.

And because the Chiefs are return visitors to the spectacle of a Super Bowl, we’ve chronicled their housing histories—right around this time last year, in fact.

This isn’t to say there wasn’t more housing dirt to unearth when it comes to the reigning champs. Some team members stayed put, but plenty of others made key moves in the Kansas City metro area—which is exactly the subject we love to tackle.

So while you’re plowing down nachos and wondering whether Patrick Mahomes can vanquish the seemingly unstoppable Tom Brady, we’re pondering exactly when Mahomes’ grand new mansion will be finished.

Here’s the latest on the homes of the defending champs.

Patrick Mahomes dials up big baller homes

He’s the undisputed star of the show in Kansas City.

The young quarterback with the golden arm hasn’t moved away from his deluxe home in the city’s Country Club District—yet.

But coming off last year’s Super Bowl victory, Mahomes inked the league’s largest contract: a 10-year, $503 million deal, which would make most people reassess their real estate situation.

So it wasn’t a huge surprise when he let a bit of housing news slip when he spoke with radio host Dan Patrick last week.

Mahomes told Patrick that he had purchased a plot of land in the Kansas City area with plans to build a home with a number of amenities—including a half-football field.

Following this nugget of information, we tracked down an 8-acre lot purchased in the gated country club community of Loch Lloyd. The private community is centered around a lake and a Tom Watson–designed golf course.

Gates at Loch Lloyd
Gates at Loch Lloyd

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An LLC connected to the signal caller purchased a large, undeveloped parcel in Loch Lloyd in September 2020 for $400,000. Although the land was relatively cheap, we can only imagine what the construction costs will be for a custom-built mansion fit for the NFL’s brightest young star.

The acreage will easily accommodate a 60-yard patch of greenery in the backyard. For the man with football’s fattest contract, the cost of a groundskeeper and lawn maintenance is just a rounding error.

This land grab wasn’t Mahomes’ only purchase in 2020. According to GQ magazine, the quarterback also snagged a place in the Dallas metroplex during the coronavirus lockdown.

The same LLC purchased a four-bedroom home in Westlake, TX, in May 2020. Listed for $4,259,750 last March, the “stunning modern estate” measures 7,844 square feet and is part of the gated Vaquero community. The enclave is what D magazine called “a bubble for new money.”

Patrick Mahomes' Westlake, TX, home
Patrick Mahomes’ Westlake, TX, home

realtor.com

Pool at Westlake home
Pool at Westlake home

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Naturally, there’s a private golf course for residents. In the offseason the quarterback was teeing off every day at 3 p.m. The club membership fee? A reported $150,000 with annual dues of $17,000.

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Tyreek Hill may be leveling up

One of the speedsters on the receiving end of many of Mahomes’ passes, All-Pro wideout Tyreek Hill has made his home in Lee’s Summit, MO, over the past year.

In late 2019, Hill purchased a five-bedroom home on nearly 4 acres in the suburb east of Kansas City.

While we weren’t able to deduce what Hill paid for the place, he put the 7,562-square-foot residence on the market in December 2020 for $1.3 million.

It looks to be an entertainer’s delight. There’s a heated saltwater pool out back and a sport court and home gym inside—ideal for an athlete or wannabe athlete.

Hill’s signed with the Chiefs through the 2022 season, so perhaps he’s looking to follow in Mahomes’ giant footsteps and level up his housing situation.

Tyreek Hill's home in Lee's Summit, MO
Tyreek Hill’s home in Lee’s Summit, MO

realtor.com

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Travis Kelce settles down in Kansas City

Another Chiefs star who’s pulled down his fair share of passes from Mahomes is the longtime tight end. Travis Kelce has been a fixture for the Chiefs since 2014.

The three-time All-Pro has a four-bedroom home in Kansas City’s Briarcliff West neighborhood that he purchased in March 2019. The 4,164-square-foot split-level was listed in December 2017 for $1.2 million. Kelce bagged it a year and a half later for $995,000.

Sitting on an acre lot, the home is equipped with a gym, a wine cellar, and a large pool out back. The master suite is on the main floor, and there’s also a dedicated office.

Travis Kelce's Kansas City, MO, Home
Travis Kelce’s Kansas City, MO, Home

realtor.com

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Honey Badger finds a home in Kansas City

After being unceremoniously dumped in the desert by the Arizona Cardinals after the 2017 season, veteran safety Tyrann Mathieu has rebounded into All-Pro form for the Chiefs.

The defensive star, who’s known as the Honey Badger, has also burrowed into a home in the Midwest—indicating he might patrol the Chiefs’ backfield for a few more seasons. His contract does run out after the 2021 season, so we’ll keep an eye on this luxe home located in Overland Park, KS.

Mathieu bought the six-bedroom residence in the Farm at Garnet Hill development in April 2019. While the purchase price wasn’t disclosed, the place was on the market for $1,285,000 before the Badger sealed the deal.

Located on the southern edge of the Kansas City metro, the 6,044-square-foot home sits on an acre of land.

Highlights include a deluxe kitchen with a large island, Wolf appliances, and a walk-in pantry. The backyard features a covered patio with a fireplace, and the home’s lower level is outfitted with a bar, media room, and extra bedroom.

Tyrann Mathieu's home in Overland Park, KS
Tyrann Mathieu’s home in Overland Park, KS

realtor.com

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Overland Park proves popular

The Honey Badger isn’t alone in Overland Park. We spotted both backup quarterback Chad Henne and wide receiver Sammy Watkins as renters in the Kansas City suburb.

When not backing up Mahomes, Henne makes his main home at a rural 5-acre residence about 70 miles to the east of Philadelphia, near Reading, PA. And the well-traveled QB can pump his fist all summer long if the Chiefs win again—or even if they don’t.

In May 2019, he splurged on a brand-new $2,795,000, six-bedroom home on the Jersey Shore in the town of Avalon, NJ.

Chad Henne's house in Avalon, NJ
Chad Henne’s house in Avalon, NJ

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Fellow Overland Park renter Watkins has also scored off the field. In July 2020, he sold his four-bedroom starter home in Winter Garden, FL, for $664,000 just a month and a half after listing it for $689,900. The speedy sale follows a big purchase the receiver made in January 2020. Right as the team was prepping for last season’s Super Bowl, the Florida native closed on the purchase of a six-bedroom mansion in Windermere, FL, for $2.28 million.

Anthony Hitchens has put down more permanent stakes in Overland Park. In addition to the homes he owns in Frisco, TX, the inside linebacker bought a brand-new four-bedroom home in the Wyngate neighborhood in April 2018.

Defensive lineman Chris Jones closed on the purchase of a huge home—also in Overland Park—just as the 2020 season was getting underway. The Pro Bowler bought a brand-new, 9,163-square-foot mansion for an undisclosed amount last September. The six-bedroom home was on the market for $1.85 million and features a six-car garage as well as a finished basement that was marketed as “the ultimate man cave.”

Chris Jones' home in Overland Park, KS
Chris Jones’ home in Overland Park, KS

realtor.com

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Andy Reid and his bosses stay put

Coming off a Super Bowl season, there was no reason for the nonplaying personnel to shake things up. Owner Clark Hunt, general manager Brett Veach, and head coach Andy Reid all stayed put in 2020. However, if the Chiefs manage to win another title, we have a feeling these guys might treat themselves to a not-so-little real estate splurge this offseason.

Source: realtor.com