Is Your Team Being Sold?
Posted by Chad BordeauxMonday, July 14th, 2008
I just finished reading a good article on CNBC.com on the potential for a large number of professional sports teams to sell within the next few years.
The article points out several compelling reasons why this may occur. First, is Obama becomes president, the capital gains taxes paid by the many aging owners will likely double. In the example provided, the sale of the Pittsburgh Steelers after Obama’s tax hike would result in approximately $80 million more in taxes due then if the transaction is completed prior to the tax increase.
This is something to consider from a planning perspective for not only professional sports team owners but anyone with a business or highly appreciated assets that they plan to sell in the next few years. An increase from 15% to 28% could result in substantially more tax owed.
Secondly, the article points out that the repeal of the estate tax in 2010. I am not sure that the law is not going to change dramatically prior to this. As it stands right now, there is a lot of planning going on to determine how to transfer those assets in 2010.
The full article is here: Pittsburgh Steelers, Taxes (Obama) And Selling Sports Teams
Chad is a Charlotte CPA who works with small business owners and invidiuals on a monthly basis to provide them with proactive guidance and advice on how to grow their business, minimize their tax liabilities and grow their bottom line. You can find our more about Chad by visiting his profile here: Chad BordeauxTags: professional sports
