Chicago, Illinois (PRWEB) October 11, 2012
The dust has begun to settle from a historic 2012 Ryder Cup tournament. Despite a record-breaking meltdown by the U.S. squad, the economic impact on the greater Chicago area was projected to reach approximately $135 million. This is great news for Illinois, though the tax and IRS repercussions must also be taken into consideration.
The Ryder Cup, a biennial golf competition between teams from Europe and the United States which alternates between courses in the U.S. and Europe, has traditionally been a major boon to local economies.
A big part of this is due to the influx of travelers from abroad. Chicago Real Estate Daily found that, “International travelers, who made up at least 10 percent of visitors at each of the past two Ryder Cups, spend about twice as much as domestic visitors on average — $1,100 per trip versus $567 — according to 2011 figures from the Illinois Office of Tourism.”
In fact, the 2012 Ryder Cup’s projected economic impact places it at number four in overall Gross Economic Impact For Ryder Cup Host Cities:
1. Kildare, Ireland (2006): $182 Million
2. Newport, Wales (2010): $157 Million
3. Warwickshire, U.K. (2002): $138 Million
4. Chicago, U.S. (2012): 135 Million (Projected)
5. Louisville, U.S. (2008): $120 Million
6. Detroit, U.S. (2004): $114 Million
(Source: Crain’s reporting)
According to the Chicago Tribune, the economic impact extends to some unexpected recipients: "’With school budgets and the economy ... this has been a fantastic opportunity,’ said Jennifer Jungel, Lake Park High communications director and a Ryder Cup volunteer coordinator. The school cut a $415,000 deal with the PGA, giving organizers access to its east campus and parking lot, which is conveniently across the street from Medinah Country Club.”
Moreover, extra costs have been nullified by tax surpluses in places like the village of Itasca, “…which is spending $18,000 on extra police to manage traffic and security, will more than offset that through local tax on its 1,115 hotel rooms, which have been sold out for months.”, according to Chicagobusiness.com.
Additionally, the Tribune article notes that many residents are offering their homes to daily and weekly renters, some willing to pay from $10,000 to $15,000 for a house near the golf course. One owner offered "private evening sailing on Lake Michigan" on a 30-foot yacht to sweeten the deal, and another threw in his Mercedes as part of the housing package.
2012 Ryder Cup Economic Surplus Disadvantages: Tax and IRS Ramifications
However, Chang and Carlin, LLP attorney David Chang notes paradox of such unexpected surpluses: “While the 2012 Ryder Cup-stimulated surpluses have been a great boon for Illinois residents, there are individual tax and IRS issues that must be addressed, or the surplus could dissolve into thin air faster than the American players’ lead.”
This just means that taking things like reporting unforeseen income for individuals and businesses into consideration after a major surplus is a must. Although billions of dollars in income go unreported every year, it is against the law not to report all income to the IRS.
According to MSNBC.com, the exact amount of unreported income is tough to pin down: “Much of this unreported income doesn't hit the IRS radar because it comes from sources that don't independently report it -- like wages paid by employers or dividend and interest income paid by banks and investment firms.”
However, these tax and IRS details are not troubling Illinois residents at the moment. The 2012 Ryder Cup saw Europe pull off one of the greatest comebacks in the history of the event to beat the United States and win the Ryder Cup by 14-1/2 points to 13-1/2 on Sunday. The excitement around this event combined with a major influx of business made for a very good weekend in the Windy City.