Wednesday, Might 18, 2022
Soled & Morris: The Unusual And Curious Tax Remedy Of Funding Bills
Jay A. Soled (Rutgers; Google Scholar) & Mallory A. Morris (Dechert), The Unusual And Curious Tax Remedy Of Funding Bills, 67 Vill. L. Rev. 101 (2022):
To safe earnings, taxpayers typically incur a variety of bills. At the very least theoretically, one may suppose that the Inside Income Code (“Code”) would accord all such bills related tax therapy, however (i) commerce or enterprise bills and (ii) funding bills endure the precise reverse tax therapy: the previous are usually allowed, whereas the latter are generally disallowed. The plain query is why there’s a distinction in therapy between the 2.
This Article explores attainable solutions to that essential query. It first traces the evolution of the Code’s dichotomous tax therapy of commerce or enterprise versus funding bills. It then investigates attainable justifications and their related deserves for the totally different dealing with of those two expense classes.
With this background info in thoughts, to make the tax system extra administrable, equitable, and environment friendly, this Article advocates for the deductibility of funding bills and describes a number of helpful implications related to the establishment of this proposed reform.
https://taxprof.typepad.com/taxprof_blog/2022/05/soled-morris-the-strange-and-curious-tax-treatment-of-investment-expenses.html
