2 ms·
The article is talking about writing off the purchase price of a team over 15 years. That's a very generous tax break as it allows to claim a loss based on the
by youarewrong 9y ago
The article is talking about writing off the purchase price of a team over 15 years. That's a very generous tax break as it allows to claim a loss based on the fiction that a NFL team is used up after 15 years and needs to be replaced with a new one.
- kazinator 9y agoIsn't it used up? Guys who were 25 are now forty. The team has operating expenses. It's not a pure asset like a vault full of gold bricks. It is normal to be able to write off asset acquisitions, not only expenses. E.g. I'm a self-employed software contractor. My gov't lets me write off, say, a new laptop, which goes into my ledger as an asset.
- youarewrong 9y agoIt would be used up if we'd expect the package of trademarks, rights, properties, NFL membership, etc that is the "team" to have lost most of its value after 15 years. Nobody expects that. Everybody expects your 15 year old laptop to be worthless. (Operating expenses don't matter, they're accounted for anyways. No double dipping!)
- kazinator 9y ago> Everybody expects your 15 year old laptop to be worthless. Though that is true, the rules don't actually allow it to be written off over 15 years anyway; and, besides, they are not based on the future value of specific kinds of equipment. If some asset which completely retains its value were necessary for my business, I could still write off its purchase.