Professional sports teams that trade players, staff, and draft picks no longer have to assign a monetary, taxable value to those contracts, unless the team gets cash in the trade, the IRS announced.
Revenue Procedure 2019-18 essentially shields sports teams from a negative consequence of the 2017 tax overhaul, which limited “like-kind exchange” treatment—in which no taxable gain is recognized—to certain real estate deals. Players’ contract trades previously received such treatment.
“Historically it has been difficult for professional sports teams to assign a monetary value to contracts or draft picks due to the fluctuating nature of the performance of ...
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