The primary aim of this activity is to explore tax issues related to an exchange of non-financial assets. Students are presented with a case that involves a fictional trade of players between two teams in the National Basketball Association, the Milwaukee Bucks and the Washington Wizards. Using a trade date of January 1, 2018, students are presented with the opportunity to explore the treatment of a non-financial asset like-kind exchange post Tax Cuts and Jobs Act of 2017. In addition, students are challenged to determine the definition of fair market value and how its calculation could have a substantial impact on the finances of a professional basketball team. Data gathered from pre and post-questionnaires, including both objective measures and student experiential feedback, supports the usage of this activity. Results show that this case increased students' ability to understand and summarize relevant information from a complex set of facts while also growing their tax knowledge and tax research skills.
The cryptocurrency market has become one of the fastest growing industries in the world, with a market capitalization exceeding $2 trillion. This rapid growth has caused strains on financial systems, as well as the Internal Revenue Service. With cryptocurrency technology developing faster by the week, a unified and simplified regulatory approach is the sensible roadmap for the Internal Revenue Service in its task to impose federal income tax. This paper proposes that by researching prior IRS guidance on unrelated issues and using preexisting precedent, specifically, Revenue Procedure 2019-18, the Internal Revenue Service can more simply impose federal income taxes on the ever-changing cryptocurrency space.
JEL Classifications: K23; K29; K34.
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