Below the fold; AI hyperscalers; politically biased; and other highlights from our favorite tax bloggers.
Processing Content
Changing hands again
TaxProf Blog : The Los Angeles Lakers are changing hands again. Less than a year after Guggenheim Partners CEO Mark Walter acquired control of the team in a transaction valuing the team at $10 billion, a group led by venture capitalist Josh Kushner and former Disney CEO Bob Iger reportedly has agreed to acquire the franchise at a $12.5 billion valuation. Well, game on. Some numbers and informed speculation — as well as why the most interesting version of this deal isn't likely to occur — below the fold.RSM : While significant attention will focus on which party controls Congress during the final two years of President Donald Trump's second term, the 2026 elections will also significantly influence state and local tax policy. This blog highlights key election-related developments and considerations for taxpayers evaluating how shifting legislative and executive dynamics may affect state tax policy in the coming years.Dean Dorton : Employees are already using artificial intelligence. Vendors have embedded it in the tools they depend on. Workflows are increasingly automated by systems that make decisions, take actions and interact with the most sensitive data — often without anyone fully understanding the exposure. The question is no longer whether an organization uses AI. It's whether it is being used in a way companies can stand behind when something goes wrong.Tax Foundation : U.S. companies are projected to invest trillions of dollars in AI over the next several years. Goldman Sachs recently estimated that capital expenditures from just a few U.S. AI "hyperscalers" will reach $581 billion in 2026 alone. Some, though not all, of this investment will go toward the buildout of data centers. Members of Congress concerned about the land and energy use of data centers, as well as the labor market effects of AI, have introduced proposals to tax new data centers.ITEP : This blog has tracked $204 billion in federal tax breaks disclosed by publicly traded U.S companies so far for 2025. But those benefits were not spread evenly across the corporate sector: Six companies alone accounted for $83 billion of them. The stunning size of the federal income tax breaks corporations claimed this year dwarfs past corporate tax breaks, themselves sizeable.
Renewed uncertainty
Avalara : President Trump reignited a trade war with Canada in July by announcing new U.S. tariffs starting Aug. 19. This happened mere weeks after the United States declined to confirm its intention to renew the U.S.-Mexico-Canada Agreement. The renewed uncertainty surrounding U.S.-Canada tariffs create compliance challenges for cross-border businesses. This blog provides up-to-date information.U of I Tax School Blog : With the passage of the One Big Beautiful Bill Act, Congress created Trump accounts as a new, tax-favored savings vehicle for children. For practitioners, the planning question is not whether Trump accounts replace 529 plans, but how the two vehicles fit different family goals. Trump accounts pursue a different objective, emphasizing long-term wealth accumulation and retirement savings within a child's own lifetime. Understanding that distinction is key to deciding when and how each account belongs in a family's savings strategy.Forbes : In a move that shocked many tax practitioners, on Aug. 12 the Fifth Circuit withdrew its January opinion in a closely watched partnership tax case. In its place is a significantly different interpretation of who qualifies as a "limited partner" for purposes of the self-employment tax exception. The court now holds that a limited partner for purposes of Section 1402(a)(13) is a partner who plays "no significant role in managing or running a business."Taxjar : Need a reminder on when sales tax is due in September? This blog provides September 2026 sales tax due dates.
Duck Test
Taxable Talk : On one side, there's Kalshi, Polymarket and all other companies offering prediction market sports wagers — err, sports predictions — allied with the Commodities Futures Trading Commission. On the other side, there are state regulators who say that these aren't predictions but are wagers. Cases from Washington State, New York and Connecticut may mean there will be an answer on whether the "Duck Test" applies to prediction market sports.Wolters Kluwer : UBIA is the basis in a partnership's property, and it can work to limit a partner's Section 199A deduction. Although the Section 199A deduction has been in place for several years, understanding how UBIA affects the deduction remains important for taxpayers subject to the wage and property limitations. This limitation will be relevant to taxpayers or partners who own real estate as part of their business, especially those who qualify for the deduction under the safe harbor.Trout CPA : Real estate ownership can be a powerful wealth-building strategy, but it also comes with accounting complexities that are easy to underestimate. From rental income tracking to property-level reporting and cash flow management, small real estate accounting mistakes can quietly erode profitability, create compliance risks and limit an owner's ability to scale. This blog highlights some of the most common accounting mistakes real estate investors make and how to help prevent them.The Sales Tax People : Most businesses think about sales tax as something they collect from customers. Far fewer think about use tax as something they owe on their own purchases, and that gap is exactly where a lot of quiet, compounding liability builds up. Use tax isn't an obscure or optional cousin of sales tax. It's the same tax, applied from the other direction, and it's one of the most commonly missed self-assessment obligations in the country.
Challenging global economy
Berkowitz Pollack Brant : Despite a challenging global economy, the U.S. remains a top destination for foreign investment in commercial real estate. While there have been shifts in the countries from which those investment dollars are coming and the sectors in which foreign investors allocate those funds, the fact remains that the U.S. offers foreign buyers unique opportunities and tax advantages when they plan appropriately.Mauled Again : In Pennsylvania, bills for the real property tax that supports schools are arriving. If social media posts are any indication, people are unhappy. They are unhappy because the tax has increased compared to last year. That happens every year. Some people also are unhappy because they do not want to pay for the education of someone else's children.CLA : If a company is planning solar, geothermal, HVAC, lighting or other facility improvements, green energy credits could help offset a meaningful share of the cost. Thanks to elective pay, nonprofits may be able to receive cash payments for eligible energy projects even though they don't pay federal income tax.MeyersBrothersKalicka : Over the past year, federal government officials have threatened to revoke the tax-exempt status of various nonprofits, including universities and charities, claiming they're politically biased. But as the American Bar Association asserts, it's not that easy to revoke an organization's exempt status.Boyum & Barenscheer : For a nonprofit organization, maintaining tax-exempt status is critical. But what happens if the IRS automatically revokes an organization's tax-exempt status? The agency automatically revokes the tax-exempt status of organizations that fail to file a required annual return or notice for three consecutive years.
