August 29, 2019

The IRS Been “Berry, Berry Good” to Baseball and Other Sports Team Owners in Taxing Player Contract Trades

Counsel David Shechtman and associate Matthew J. Meltzer co-authored an article for the Journal of Taxation of Investments exploring IRS Revenue Procedure 2019-18 and its impact as a “safe harbor” under which sports franchises may value player contracts (including draft picks) acquired in a trade at “zero value” for determining gain or loss under the general principles of Section 1001.

In the article “The IRS Been “Berry, Berry Good” to Baseball and Other Sports Team Owners in Taxing Player Contract Trades,” Shechtman and Meltzer review existing guidance for determining adjusted basis in a player contract, including the amortization rules under Section 167 and Section 197; the implications of Rev. Proc. 2019-18; and the limitations on using the “zero value” safe harbor.

Full Article

Services and Industries

The Faegre Drinker Biddle & Reath LLP website uses cookies to make your browsing experience as useful as possible. In order to have the full site experience, keep cookies enabled on your web browser. By browsing our site with cookies enabled, you are agreeing to their use. Review Faegre Drinker Biddle & Reath LLP's cookies information for more details.