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Full-Text Articles in Law
Executive Compensation: The Taxation Of Stock Options, Jack D. Edwards
Executive Compensation: The Taxation Of Stock Options, Jack D. Edwards
Vanderbilt Law Review
The popularity of the stock option as a method of executive compensation results primarily from its favorable tax consequences. Under present law, an executive's ordinary income may be converted into capital gain. These discriminatory provisions provide a fertile field for tax avoidance. The first portion of this paper deals with the history of stock option taxation to date. Much of the earlier law remains applicable. The historical perspective shows the wide latitude for avoidance and the faulty assumptions in which tax treatment has been grounded. The second part deals with the present tax treatment of stock options.
Foundations Used As Business Devices, Howard L. Oleck
Foundations Used As Business Devices, Howard L. Oleck
Cleveland State Law Review
The problem of abuse of the foundation device in fact contains a socio-legal issue more important than the mere question of whether a particular instrument is valid or invalid. It poses a question that may well affect the future history of this nation. In effect the issue is this :Does this nation, or does it not, desire or permit an hereditary aristocracy of wealth based on amoral manipulation of forms and legal rituals, while the government turns a blind eye to it? Our immediate problem here is the epidemic of misuse of the "charitable foundation" as a device to perpetuate …
Taxation In Stockholders' Forgiveness Of Accrued Salaries, Ronald B. Cohen
Taxation In Stockholders' Forgiveness Of Accrued Salaries, Ronald B. Cohen
Cleveland State Law Review
Cancellation of indebtedness ordinarily will be treated as income to a debtor corporation unless the debt was forgiven by a stockholder. In the latter case, the corporation normally treats the resulting benefit as a contribution to capital. However, there is a much more delicate situation when the debt is the result of unpaid salaries, interest, or other corporation expenses. In the typical case, these items would have reduced the income of the corporation in the year of accrual, but would not have been picked up as income by the cash basis stockholder. Therefore, the effective result of forgiveness of salaries …