Donald Sterling’s Last Laugh: Force Him to Sell the Clippers and He Could Pay No Taxes

[doxydad]

Ironically, the NBA’s ultimate penalty will save the owner as much as $323 million.

Section 1033 of the tax code provides a special tax treatment for people whose property has been stolen, appropriated by the government (e.g. eminent domain), or otherwise “involuntarily converted.” The basic idea is that if you have received money because someone took your stuff away from you, you shouldn’t have to pay taxes since you didn’t enter into the transaction voluntarily. Sonofabitch is going to pay NO taxes. We really need to fix our horribly outdated tax laws!

NO. REALLY.

http://www.thedailybeast.com/articles/2014/05/05/donald-sterling-s-last-laugh-force-him-to-sell-the-clippers-and-he-could-pay-no-taxes.html

[giftedgirl77]

1. UM no, not withstanding the fact that there is a contract

in place between owners & the NBA regarding these issues the writter of this article is failing to understand this tax code. It specifically states the $$$ is considered a gain unless it is put towards purchasing something else that would be considered equal to the loss.

a ) General rule
If property (as a result of its destruction in whole or in part, theft, seizure, or requisition or condemnation or threat or imminence thereof) is compulsorily or involuntarily converted—

(2) Conversion into money
Into money or into property not similar or related in service or use to the converted property, the gain (if any) shall be recognized except to the extent hereinafter provided in this paragraph:

[Erich Bloodaxe BSN]

2. So don't force him to sell. Just get the fans to boycott

so that ticket sales drop to 0, attendance drops to 0, and get the athletes to refuse to sign with the clippers.

Watch him scramble to sell on his own as the value of the team starts dropping day by day.

[WinkyDink]

3. That law is quite necessary, FGS. Whether it applies in Sterling's case remains to be seen.

[Gothmog]

4. This is not a condemnation

This section of the IRC does not apply

[lame54]

5. Who cares...

The guy's got so much money it's just score-keeping at this point

besides his accountants will make sure he pays minimum taxes anyway