Are there any tax loopholes that you think most of us Internet marketers are overlooking?
Steve Ballmer to buy Clippers for $2 billion
- Thread starter r3p1v
- Start date
Are there any tax loopholes that you think most of us Internet marketers are overlooking?
For a team that's never even been to the NBA finals, seems overpriced to me.
The real winner?
Donald Sterling $$$$
The real winner?
Donald Sterling $$$$
I'm sure if someone else came in with an offer above $2 billion they would of sold it to them. Regardless if they were black, white or purple. The only color that matters now is green
Ballmer will get fucked.
the players will see this and opt out of the cba in 2017, since they got raped in the new 2011 cba which reduced the player's take from 57% to 50%.
And now 2B for a team? Players will go on strike, even with Sterling out of the league. Lollolzlol.
the players will see this and opt out of the cba in 2017, since they got raped in the new 2011 cba which reduced the player's take from 57% to 50%.
And now 2B for a team? Players will go on strike, even with Sterling out of the league. Lollolzlol.
Under the current contract they get $20 million a year, there is talk that their new TV contract could be $75 million a year over 20 years you get 1.5 billion
microsoft going after the nba
Man I miss Brandon Roy. That team had so much potential if Roy's knees didn't go on him and if Oden panned out.
There are cheaper ways to lose your nerd card than paying two billion for an NBA team.
Edit: after seeing the above picture of Paul Allen, never mind. Who knows what the fuck Ballmer is thinking. A TV contract renegotiated at 75M for 20 years will depreciate heavily with inflation.
But hey, he can afford to lose the cash. That may be what it's all about.
Edit: after seeing the above picture of Paul Allen, never mind. Who knows what the fuck Ballmer is thinking. A TV contract renegotiated at 75M for 20 years will depreciate heavily with inflation.
But hey, he can afford to lose the cash. That may be what it's all about.
Do you have a fucking clue what NPV is? You're embarrassing yourself.
DCF at $75MM a year is a bit over $1.1B adjusted. The contract is going to be for something like $45MM, not $75MM.
I'm just hoping that Grunin chimes in soon and explains all of this financial stuff for us "simple" folk...
The Dodgers have a $7B 25Y year deal with Time Warner Cable. Obv that does not value the team at $7B+. The Dodgers are valued at ~$2B. The club's operating loss is $80MM due to player's salaries.
This is all accounting tricks. If you ask high finance guys, they would tell you the Govt is picking up majority of the tab for that purchase. Think about it for a minute! The guy makes hundreds of millions of dollars from his investments, and will owe a lot of money to uncle SAM.
Instead you buy a team, and lose tons of money, which you can deduct from all your gains well into the future. Yes he paid $2B, but at the end of the day, the govt will lose a lot of revenue.
Instead you buy a team, and lose tons of money, which you can deduct from all your gains well into the future. Yes he paid $2B, but at the end of the day, the govt will lose a lot of revenue.
You are conflating a depreciable loss versus a tax credit - two entirely different things and in this case 5 fold different.
If he depreciates over 10 years the full $2b than that's $200 million a year. That doesn't mean in one of those years he can sell enough shares to generate $200 million capital gains tax and cancel it with the $200 million NBA loss. The $200 million NBA loss goes against his capital gains BEFORE the tax is calculated.
So say he sells shares enough so he has a $1b capital gain that year. He gets to subtract $200 million from that and pay his capital gains tax on $800 million. The tax savings(delaying really) isn't $2b total for buying a $2b NBA team - if his tax rate is 20% it's $400 million.
Also don't forget he has to recapture this if he sells in 10 years like you proposed. When you depreciate an asset you change the basis so if he takes off a full $2b over 10 years and then sells for $1b that isn't a loss. It's still a $1b gain the year he sells it he now has to pay taxes on it.
So in conclusion buying a NBA team for $2b can help you delay paying capital gains taxes. However it cannot help you delay $2b in total potential TAX on your gains by a long shot. Also whenever the team is sold all those delayed gains come right back. So this play allows him to delay some taxes which is good - it doesn't let him eliminate $2b in potential taxes forever or some crazy shit like that though.
[ame=http://www.youtube.com/watch?v=8N50Saf17vo]Racist Clippers owner Donald Sterling out, ex-Microsoft CEO Steve Ballmer offers $2 bn for team - YouTube[/ame]
Taiwanese news depicting Sterling as KKK, because we all know that the KKK are big fans of Jewish people.
Taiwanese news depicting Sterling as KKK, because we all know that the KKK are big fans of Jewish people.
You're miss-judging the tax law in question.
Microsoft pays dividends every year and he gets millions of dollars yearly.
He has other investments that generate millions in gains yearly.
He would not be selling that Microsoft stock to generate the funds for that purchase. You borrow the money and pledge the stock as collateral. ( bingo, no capital gains as I did not sell it - yet)
In fact, the firm that lends him the money is partially owned by him, so he does not mind paying higher interest rate, as he's playing with house money (govt money).
Trust me, I can get very creative and when you bring in smart politically connected tax lawyers that know the law better than IRS employees, you can bet Uncle SAM will not be seeing much in revenue from this transaction.
Also, he could set it up as a trust with strict guidelines for the next generations of his kins. The initial setup cost can all be claimed with the right set of paperwork.
This is one of the reasons the govt will never collect enough taxes to fund the massive bureaucracy.
You know what the rich fear the most - Flat tax rate with absolutely no deductions of any kind. Simple as it may sound, they would never go for it as it eliminates the leverage politicians have to raise money.
I can eliminate the govt debt with just - 20% Federal tax rate and 8% state tax rate, with absolutely no deduction. You make a dollar walking a dog, you have to pay taxes.
Most people in the bottom would not even see the merit in that proposal, because they think it's not progressive enough.
The best formula, same flat tax for everyone and no deductions allowed, is the best way to stop all this accounting shell game that the average person does not understand.
Reasons Why I Love WF.
#148. A thread which would normally decline into a conversation about athletes and sports teams, turns into a thread about tax-saving loopholes.
#148. A thread which would normally decline into a conversation about athletes and sports teams, turns into a thread about tax-saving loopholes.
Speaking of regulatory loopholes; if you think sports have some interesting exemptions, consider that the insurance industry is the only one that FTC cannot levy action against, not even investigate....agencies, especially large geo-monopolies, use that to their advantage. Affiliates can be fucked at whim.