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Full-Text Articles in Law

A Corporate Tax For The Next One Hundred Years: A Proposal For A Dynamic, Self-Adjusting Corporate Tax Rate, Adam H. Rosenzweig Jan 2015

A Corporate Tax For The Next One Hundred Years: A Proposal For A Dynamic, Self-Adjusting Corporate Tax Rate, Adam H. Rosenzweig

Northwestern University Law Review

No abstract provided.


Cancellation Of Debt And Related Transactions, Douglas A. Kahn, Jeffrey H. Kahn Jan 2015

Cancellation Of Debt And Related Transactions, Douglas A. Kahn, Jeffrey H. Kahn

Articles

If a taxpayer borrows money, the borrowed funds are not included in the taxpayer's gross income. That treatment is proper even though the taxpayer has increased his assets by the amount he borrowed because he also has created a corresponding liability to pay back the loan. The taxpayer's net: wealth has not increased. 'The more difficult and interesting questions arise when the taxpayer fails to repay the loan. At first blush, it would appear that upon cancellation of a loan, the taxpayer should have income for the amount that was cancelled. However, the current tax treatment is not that simple. …