Tax preference leases: the costs and the benefits

Article Abstract:

As a result of changes in lease tax laws made by the Deficit Reduction Act of 1984, the classification of a transaction as a lease will, from 1984-1987, be subject to case law and IRS guidelines existing before the Economic Recovery Tax Act (ERTA) of 1981. After 1987, the traditional IRS guidelines or the more liberalized finance lease will apply to leasing arrangements. Changes in the tax law have, to a certain extent, decreased the income tax benefits of leasing; nonetheless, there are certain tax advantages for both lessor and lessee. These benefits are due primarily to: (1) the lessor's ability to raise capital at a lower cost than would be attained by the lessee; and (2) the lessor's ability to receive larger tax savings than the lessee.

Management, United States. Internal Revenue Service, Tax expenditures, Lease or buy decisions

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High court defines nontaxable order "solicitation." (Corporations)

Article Abstract:

The case of the Wisconsin Department of Revenue v William Wrigley, Jr, Co pointed out the extent to which companies can claim exemption from state-imposed corporate income tax based on the use of solicitation orders. The Supreme Court ruled that the company's efforts to provide customers with replacements for stale products and offer supplies directly through agency stock checks did not merely serve as an effort to solicit orders but also served as an ancillary activity to solicitation. The company's failure to seek de minimis exception based on this ruling further made it's activities in Wisconsin liable to corporate income tax compliance.

Corporate income taxes

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Cooperative efforts needed to lower healthcare costs

Article Abstract:

The importance of health care cost is increasing in corporate America, and executives are focusing on new ways to control such costs. A board-level Committee on Health Care has been organized by Chrysler to determine and control how the corporation spends roughly $300 million each year on healthcare services. Some corporations have reorganized the employee fringe benefit plans to promote new delivery systems, skilled nursing services, ambulatory surgery, alcohol and drug rehabilitation, and various home healthcare services.

HEALTH SERVICES, Analysis, Medical economics, Health insurance, Medical care, Cost of, Health care costs, Employee benefits, Control

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