Making the Trade: A Research Case Exploring Like-Kind Exchange Treatment Post Tax Cuts and Jobs Act

• In Event: Publications and Pedagogy

Abstract

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. Student responses to a post-case questionnaire indicate that the activity develop their ability to understand and summarize relevant information from a complex set of facts while also increasing their tax research knowledge and skills.

Authors

• Brian Huels, UW-Whitewater

• Paul Nylen, University of Wisconsin - Whitewater