Donald Sterling WINNING

Discussion in 'The Howard Stern Show' started by booybob, May 5, 2014.

  1. booybob

    booybob Well-Known Member Banned User

    Reputations:
    1,927
    Joined:
    Jan 16, 2012
    Messages:
    3,569
    Likes Received:
    800
    Sure he may be forced to sell the team but did you know since the NBA is forcing him to sell, the proceeds will be tax free saving him APPROX 323 MILLION.


    No Taxes If Sterling Is Forced to Sell

    By Nick Lum 12 hours ago The Daily Beast










    [​IMG] .View photo

    No Taxes If Sterling Is Forced to Sell



    Donald Sterling’s reputation had a bad week, but his pocketbook has never looked better. The punishment meted out by NBA Commissioner Silver—the maximum league fine of $2.5 million—pales in comparison to the billion dollars Sterling stands to make from selling the Clippers. Ironically, the league’s nuclear option—a forced sale—could also end up lining Sterling’s pocketbook with millions in tax savings. Instead of his just deserts, will Sterling end up with a sweet tax treat?





    First, there’s never been a better time for Sterling to sell, financially speaking. The Clippers have historically been regarded as one of the worst teams in all of professional sports. During the first 30 years of Sterling’s ownership (1981-2011), the Clippers won more games than they lost only twice. They made the playoffs just four times and managed to eke out only one playoff series win. But since 2011, they’ve made the playoffs every year and are even considered a fringe contender for the NBA title this season. Potential buyers can expect to see strong continued performance because the Clippers’ core is locked up through next year or beyond thanks to Chris Paul, Blake Griffin, DeAndre Jordan, and Coach Doc Rivers.



    With this strong platform, the Clippers could sell for $1 billion. Just consider two other NBA teams—worse performers in much smaller markets—that sold in the past year: the Sacramento Kings ($534 million) and Milwaukee Bucks ($550 million). So Sterling, who paid only $12.5 million for the team back in the 1980s, may be able to lock in a 100-fold return on his investment.
    If Sterling had voluntarily sold the team for $1 billion, he would have owed about $200 million in federal income tax and another $123 million in California state income tax. But thanks to a tax law that applies only to forced sales or other “involuntary conversions,” Sterling’s profits may all be tax-free.



    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.
    (By writing about this tax-saving opportunity, I may inadvertently help Sterling find a silver lining in his well-deserved cloud. Billionaires like him have top-notch advisers who have undoubtedly already identified this tax provision, but I’d take a referral fee for the idea if his guys haven’t. One percent of the $323 million saved should do the trick.)

    READ MORE Shelly Sterling: Force My Hubby Out
    There are several requirements that Sterling would have to satisfy in order to qualify for this tax benefit. One requirement that is likely to generate controversy with the Internal Revenue Service is that Sterling must use the sale proceeds to purchase “other property similar or related in service or use” to the converted property. The easiest way to satisfy the similarity requirement would be to purchase one or more other sports franchises. However, Sterling may find it difficult—to put it mildly—to find a willing seller, given his unpopularity.
    Instead, Sterling could purchase other types of assets and argue that they are “similar or related in service or use” to him. Since the statute doesn’t actually define ”similar” or “related,” Sterling’s lawyers would have ample room to argue that whatever investment property Sterling buys satisfies these vague criteria.
    READ MORE V.A. Clinic ‘Fixed’ Appointment Records
    So Sterling could go on a shopping spree with the sales proceeds, substantially diversify his investments, and still benefit from the deferral of hundreds of millions of dollars of taxes. Given his age, this deferral is likely to be permanent. The basis of the replacement property would be stepped up to fair market value at his death, and his Clippers gains would never be subject to income tax by either Sterling or his heirs.
    If Sterling claimed benefits under Section 1033, the IRS would undoubtedly audit him. There’s no guarantee that he would ultimately prevail, but with hundreds of millions of dollars at stake, Sterling (a lawyer who is reputed to be both litigious and stingy) would probably fight the case tooth-and-nail.
    READ MORE Newark’s Explosive Mayor’s Race
    The events of the past week have likely increased the value of Sterling’s investment by tens of millions of dollars. On top of that, he may be able to save hundreds of millions in taxes if the NBA’s punishment of a “forced” sale is realized. While Sterling’s reputation has been permanently tarnished, his financial future has never looked brighter.
     
  2. cia212

    cia212 Well-Known Member VIP

    Reputations:
    14,308
    Joined:
    Jan 19, 2012
    Messages:
    4,722
    Likes Received:
    3,697
    Good for him! But, queue Obama's new racism windfall tax.
     
  3. CrucifiedAGT

    CrucifiedAGT He's Around VIP

    Reputations:
    334,098
    Joined:
    Nov 23, 2013
    Messages:
    11,667
    Likes Received:
    24,496
    Lol. Way to go professionally outraged.
     
  4. PI Nate

    PI Nate Disenfranchised since 1984... Gold

    Reputations:
    267,807
    Joined:
    Mar 4, 2011
    Messages:
    52,219
    Likes Received:
    51,883
    "Thanks obama!"
    [​IMG]
     
  5. Shivvy

    Shivvy 100k Post Club

    Reputations:
    238,067
    Joined:
    May 23, 2011
    Messages:
    124,185
    Likes Received:
    45,097
    Jay Z uses the N word all of the time in his songs. He should be banned from Nets games
     
  6. sheet metal wor

    sheet metal wor Well-Known Member

    Reputations:
    5,123
    Joined:
    Aug 4, 2012
    Messages:
    1,333
    Likes Received:
    1,010
    So now in America its ok to confiscate some persons property, based on something they said?

    I am not down with this at all.
     
  7. Humongous

    Humongous Well-Known Member

    Reputations:
    26,246
    Joined:
    Dec 14, 2011
    Messages:
    1,894
    Likes Received:
    2,970
    Sterling is 80 and has cancer. I doubt he would have too long to enjoy all that money. He'll probably leave it all to his girlfriend/mistress, Cobra Commander.

    [​IMG]
     
  8. crazypreacher

    crazypreacher Hey yo

    Reputations:
    222,676
    Joined:
    Sep 1, 2010
    Messages:
    47,095
    Likes Received:
    42,227
    Has that asshole Spike Lee ever referred to honkies as "crackers" in his shit movies. :ban:
    Has Alec Baldwin ever referred to paparazzi as "faggots?
    :ban:
     
  9. crazypreacher

    crazypreacher Hey yo

    Reputations:
    222,676
    Joined:
    Sep 1, 2010
    Messages:
    47,095
    Likes Received:
    42,227
    :haha:
     
  10. larryluncg

    larryluncg Empty VIP Gold

    Reputations:
    14,287
    Joined:
    Jun 28, 2012
    Messages:
    11,143
    Likes Received:
    8,887
    Winning. :shit:
     
  11. 1Vegasgirl

    1Vegasgirl Well-Known Member VIP Gold

    Reputations:
    449,040
    Joined:
    Jan 11, 2012
    Messages:
    32,496
    Likes Received:
    45,913
    They would just blow it anyway.:jj:
     
  12. Kracka-Mike

    Kracka-Mike Temp Ban Gold

    Reputations:
    2,394
    Joined:
    Sep 24, 2010
    Messages:
    2,469
    Likes Received:
    397
    Who gives a fuck what any of them are doing. They don't give a fuck about you or me
     
  13. greyt

    greyt Well-Known Member

    Reputations:
    11,008
    Joined:
    Nov 22, 2012
    Messages:
    3,051
    Likes Received:
    2,576
    I don't understand old people who are clearly set financially for the rest of their lives but still obsessed with money (Howard). I guess maybe it's that drive that gets them rich in the first place but at some point don't you just stop worrying about it and enjoy yourself?
     
  14. crazypreacher

    crazypreacher Hey yo

    Reputations:
    222,676
    Joined:
    Sep 1, 2010
    Messages:
    47,095
    Likes Received:
    42,227
    I want their courtside seats.
     
  15. baby booie

    baby booie Active Member

    Reputations:
    446
    Joined:
    Jan 23, 2012
    Messages:
    790
    Likes Received:
    133
    Maybe the fucker is going to be buried with all his money in a solid platinum casket?
     
  16. RumBalls

    RumBalls The original RumBalls, est. Jan 16, 2012

    Reputations:
    10,136
    Joined:
    Jan 16, 2012
    Messages:
    2,622
    Likes Received:
    2,086
    If it was about blacks, yes.
     
  17. Mlaw

    Mlaw Quite Contrarian Gold

    Reputations:
    369,449
    Joined:
    Nov 5, 2010
    Messages:
    58,833
    Likes Received:
    23,909
    First it's not "just deserts" second, I think the tax authorities would likely claim that because he voluntarily joined the league and thereby submitted himself to their bylaws, it's really not "involuntary" For example, let's say the divorce court ordered the sale, it would be taxable, because the parties voluntarily submitted to the court process.
     
  18. AGT Blows

    AGT Blows Well-Known Member

    Reputations:
    79,083
    Joined:
    Dec 30, 2011
    Messages:
    10,616
    Likes Received:
    6,070
    I think the NBA should move the Cippers to Des Moines. TLD would love it.
     
  19. CrucifiedAGT

    CrucifiedAGT He's Around VIP

    Reputations:
    334,098
    Joined:
    Nov 23, 2013
    Messages:
    11,667
    Likes Received:
    24,496
    And Gays. They are coming after the owner of the Magic.
     
  20. CrucifiedAGT

    CrucifiedAGT He's Around VIP

    Reputations:
    334,098
    Joined:
    Nov 23, 2013
    Messages:
    11,667
    Likes Received:
    24,496
    How did he break their by laws? By getting recorded in a private conversation?