Vacation Home Conversion, Debt Discharge And Partnership Issues All In One Tax Court Case
When you borrow money secured by property whether the debt is recourse or nonrecourse can have tremendous tax significance. From an economic viewpoint, you want the debt to be nonrecourse. The idea is that if you can’t pay, you hand the bank keys and you are done. Sometimes though you can get that deal with recourse debt. It is called a “short sale”, which has a different meaning in real estate than it does on Wall Street.
Law Professor Argues Opportunity Zone Program Is Harmful
It seems though that the impetus to tinker with the Code to achieve goals other than raising the right amount of revenue with the least collateral damage is irresistible. Tax expenditures have a way of seeming like a free lunch. So when a young billionaire reflects on how to make the world a better place by directing capital to areas that need it, why not add another section to the Internal Revenue Code? If it works society will have gotten quite a bang for his activist bucks.
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Over and over again courts have said that there is nothing sinister in so arranging one’s affairs as to keep taxes as low as possible. Everybody does so, rich or poor; and all do right, for nobody owes any public duty to pay more than the law demands: taxes are enforced exactions, not voluntary contributions. To demand more in the name of morals is mere cant.