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Depreciation was introduced to US tax code in 1909. If the legislators want to vindictively punish owners of sports teams, and deny them use of tool that’s avai

by xyzzyz 5y ago

Depreciation was introduced to US tax code in 1909. If the legislators want to vindictively punish owners of sports teams, and deny them use of tool that’s available to everyone else, then they have to do it by new explicit rule making. However, it is beyond clear that it is not being “buddies” with politicians that allows sports team owners to depreciate them.

KingOfCoders 5y ago
Depreciation for players in sports teams was introduced in 1909? Didn't know, I'm not from the US, so thank you.
- xyzzyz 5y ago
  No, the point is that there is no special treatment in the tax code with respect to depreciation and sports teams. Same rules as for everything else apply.
  - KingOfCoders 5y ago
    Some would argue that a factory machine that breaks over time is different from a sports player who gets better and more valuable over time. But I guess if you squeeze your eyes hard enough, everything looks the same.
    - bart_spoon 5y ago
      Kind of depends. Every player eventually depreciates in value as age and wear increases. Some players will first appreciate as they hit their prime, but not all.
kristofferR 5y ago
Please read the article next time. "Congress inaugurated the modern era of amortization by simplifying the rules in 1993: Under the new regime, the purchaser of a business would be allowed, over the span of 15 years, to write off more types of intangible assets. This might have been welcome news for the sports business. But Congress explicitly excluded the industry from the law. Following lobbying by Major League Baseball, in 2004, sports teams were granted the right to use this deduction as part of a tax bill signed by President George W. Bush, himself a former part owner of the Texas Rangers. Now, team owners could write off the price they paid not just for player contracts, but also a range of other items such as TV and radio contracts and even goodwill, an amorphous accounting concept that represents the value of a business’ reputation. Altogether, those assets typically amount to 90% or more of the price paid for a team."

by xyzzyz 5y ago

KingOfCoders 5y ago

Depreciation for players in sports teams was introduced in 1909? Didn't know, I'm not from the US, so thank you.

xyzzyz 5y ago
No, the point is that there is no special treatment in the tax code with respect to depreciation and sports teams. Same rules as for everything else apply.
- KingOfCoders 5y ago
  Some would argue that a factory machine that breaks over time is different from a sports player who gets better and more valuable over time. But I guess if you squeeze your eyes hard enough, everything looks the same.
  - bart_spoon 5y ago
    Kind of depends. Every player eventually depreciates in value as age and wear increases. Some players will first appreciate as they hit their prime, but not all.

kristofferR 5y ago

Please read the article next time. "Congress inaugurated the modern era of amortization by simplifying the rules in 1993: Under the new regime, the purchaser of a business would be allowed, over the span of 15 years, to write off more types of intangible assets. This might have been welcome news for the sports business. But Congress explicitly excluded the industry from the law. Following lobbying by Major League Baseball, in 2004, sports teams were granted the right to use this deduction as part of a tax bill signed by President George W. Bush, himself a former part owner of the Texas Rangers. Now, team owners could write off the price they paid not just for player contracts, but also a range of other items such as TV and radio contracts and even goodwill, an amorphous accounting concept that represents the value of a business’ reputation. Altogether, those assets typically amount to 90% or more of the price paid for a team."