Should Liabilities Assumed in Corporate Reorganizations Be Tax Free - A Discussion of Congressional Policy and Judicial Interpretation
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Authors
Crockett, Ulysses S. Jr.
Kiesewetter, Jay
Issue Date
1975
Type
Journal Article
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Abstract
FIRST PARAGRAPH(S)|It is elementary tax law that if a creditor cancels a debt, the debtor has received either a gift or income. If he has received the latter, he must recognize his gain. Also, if the obligation of the taxpayer is paid by another, the taxpayer has received recognizable income. Furthermore, if a buyer purchases non-business related property and assumes the mortgage on that property, the seller has received an economic benefit and the gain he recognizes must include the, amount of the debt assumed by the buyer. When the words "corporate reorganization" are injected into this mileux, however, the results are not quite so predictable...
Description
Citation
8 Creighton L. Rev. 399 (1974-1975)
Publisher
Creighton University School of Law