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

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

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

Not only did McIlroy seize the major at Augusta National, but 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 rules would have seen McIlroy forfeit practically half of that quantity. The $4M would have been subject to federal and Georgia state tax, which means he would have had to pay roughly $1.7 million.

Tax professional Paul Barham from Forvis Mazars explained 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 said. “Golfers will also have to pay state tax in Georgia at 5.39 percent.

“The U.S tax can be paid by all the golfers enjoying at Augusta regardless of where 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 any 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. but can 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 attempting to settle in and it is superb what two weeks of a bit of detachment can do for you, and sitting there being with your own ideas for a while,” he told The Telegraph.

“Yeah, it has been good to have this time to mirror and also 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, still maintains his Florida residence, which proves particularly advantageous given that many of the season’s early tournaments are held in the Sunshine State.