When the trade press looks at a broadcast transaction, the usual goal is to report the full value of the sale. But when the IRS looks at it, it sees a variety of assets, many of which are treated differently for tax purposes.
Because of this, as communications attorney Erwin Krasnow of Garvey Schubert Barer explains, the way the total is broken down is important, often with buyer and seller concerns in conflict. Krasnow uses actual contracts to explore some of the ways the allocation issue has been handled in recent years.
