As if salary cap and luxury tax rules weren’t enough, NBA Franchises may be adding a new financial consideration when deliberating trades: the IRS and federal tax law. According to Jim Tankersly of the New York Times, a recent change to United States Tax Code signed into law by President Donald Trump removes traditional protection against taxation for businesses exchanging assets. Under the old code, certain businesses were exempt from capital gains tax when swapping like goods with another business entity. While usually applied to vehicles and machinery, the exemption included players traded by professional sports franchises.
New U.S. Tax Law Could Impact NBA Trades
