Quote:
Originally Posted by NALEM
Sad but very true.
Exactly.
Likely no penalty but he will need to reinvest the capital gained.
That means most leagues are up for sale.
Courtesy of the Tax Accountant ...
Tax Code -Section 1033
Special tax treatment for people whose property has been stolen, appropriated by the government (i.e. eminent domain), or “involuntarily converted.” Keyword is involuntarily.
Keeping it simple, the approach is that if you have received money because someone took your "property" or "assets" away from you, you should not have to pay taxes on it, since you did not enter into the transaction voluntarily.
|
not according to the tax expert who wrote the article I read about it.
specifically:
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.”