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Tax Law

The University of Akron

Journal

Capital gains

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Full-Text Articles in Law

The Business Purpose Doctrine In Corporate Divisions, Stephen Rigsby Aug 2015

The Business Purpose Doctrine In Corporate Divisions, Stephen Rigsby

Akron Law Review

The corporate division, however, lends itself to schemes for avoidance of tax. These schemes are attempts to convert ordinary income into income taxable at capital gains rates. An elaborate statutory mechanism has been created to prevent this conversion. In addition, the courts have created judicial doctrines which sometimes work by adding to the statutory framework and sometimes overlap. The resulting confusion of statute and judicial doctrine is the subject of this article. The investigation will focus on that part of the statute known as the device clause and its interaction with the judicial doctrines which together are known as the …


Some Legislative Implications Of The History Of The Judicial Interpretation Of Section 1221, Hans-Dieter Sprohge Jan 1989

Some Legislative Implications Of The History Of The Judicial Interpretation Of Section 1221, Hans-Dieter Sprohge

Akron Tax Journal

This article consists of six sections. The first section briefly indicates the economic significance of the correct classification of property as either a capital or an excluded asset. In the second section, the definition of a capital asset and the list of properties specifically excluded from the definition are presented and analyzed. The analysis demonstrates how the present formulations of the definition of an excluded asset can be given a broad and a narrow interpretation. The third section discusses how the Corn Products decision was conventionally construed to be based on a broad interpretation of the definition of an excluded …