But for how long would it count against the cap? 1 year? ------------------ Rockets fans wanted at hoopsboards.com Draft Chat, NBA Chat, Team Chat, and more!
OK, aelliott. I've got my finger on subpoint (3)(b) on page 57 of IRS Publication 590. Tell me what it says and what's the best way for a Schedule C filer with overseas non-farm supplementary income to get around it. No peeking.
Heypartner, it might not be double-dipping. Here's the question I think it hinges on: If a team trades down over the salary cap and gets the exception and subsequently falls below the salary cap before the expiration of the exception, does it get to keep that exception or is it cancelled? If the trade exception gets cancelled whenever a team falls below the salary cap, then you cannot double-dip. Reducing salary is only useful when you actually fall underneath the salary cap and are thereby freed from salary cap rules. If you lose your exception (like the FA exceptions) when you fall below the cap, you can't have both the cap flexibility and the trade exception flexibility simultaneously. Can you remind me why it is important to us whether the exception counts against the cap or not? ------------------
we are treaded on the outskirts of the FAQ, here. I'd say you get a trade exception down to the point of hitting the cap, then the rest of trade benefit is awarded in cap space. That's what I always assumed. To answer your last question: that is irrelevant as concerns my idea of it being transferable, but the exception would clearly increase in value if it doesn't count as Team Salary. Be really, that's a mute point. The FAQ clearly states in #13 that "all unused exceptions count towards the Teams Salary".
