Consistency and the taxation of financial products
Article Abstract:
The principle of consistency should be used to guide the taxation of financial products. Consistency refers to equal treatment of component transactions of a taxpayer's activity, while symmetry refers to equal treatment of both sides of a transaction. Symmetry can also be used to help consistency. The Internal Revenue Code is implicitly designed for consistency and this principle should be explicitly followed for such problem areas as income measurement and hedging rules.
Publication Name: Taxes: The Tax Magazine
Subject: Business
ISSN: 0040-0181
Year: 1992
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Tax considerations for mutual funds investing in asset-backed and derivative securities
Article Abstract:
New financial products are evolving rapidly and investors often fail to consider the tax treatment before investing. This is especially important for mutual funds that need to meet certain requirements to avoid being taxed as entities because they are classified as regulated investment companies. The current tax treatments and relevant IRC sections for asset-backed securities, mortgage-backed securities and derivative products are included for the mutual fund investor.
Publication Name: Taxes: The Tax Magazine
Subject: Business
ISSN: 0040-0181
Year: 1993
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Reconciling policies and practice in the taxation of financial instruments
Article Abstract:
The US tax policy regarding the taxation of financial instruments is nonuniform and reflects the history of incremental provisioning as new instruments have arisen. Debt, equity, forward contracts, and futures contracts are among the approximately 18 separately treated categories of instruments. Reform is unlikely to produce uniform taxation, but reform should be prefaced by attention to policy which would help to anticipate new varieties and address timing concerns.
Publication Name: Taxes: The Tax Magazine
Subject: Business
ISSN: 0040-0181
Year: 1999
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