The Hidden Tax Traps In Abandonments

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dc.contributor.author Harl, Neil
dc.contributor.department Iowa State University Digital Repository
dc.date 2018-02-18T21:25:00.000
dc.date.accessioned 2020-06-29T22:52:49Z
dc.date.available 2020-06-29T22:52:49Z
dc.date.embargo 2017-08-18
dc.date.issued 2000-04-28
dc.description.abstract <p>Abandonments in bankruptcy have been a serious problem for debtors for several years. Eighth and Ninth Circuit Courts of Appeal decisions have established the “deflection” theory as the governing rule on abandonments. Under that theory, the debtor bears the income tax consequences on abandoned property as the creditor takes the property to satisfy the debt. That approach has been criticized as inequitable and as an interference with the debtor’s fresh start. However, the deflection theory is made even more painful for the debtor by the fact that the debt on abandoned assets has been characterized as nonrecourse debt. That means the entire difference between income tax basis and debt is gain (or loss); there is no discharge of indebtedness income.</p>
dc.identifier archive/lib.dr.iastate.edu/aglawdigest/vol11/iss9/1/
dc.identifier.articleid 1533
dc.identifier.contextkey 10625634
dc.identifier.s3bucket isulib-bepress-aws-west
dc.identifier.submissionpath aglawdigest/vol11/iss9/1
dc.identifier.uri https://dr.lib.iastate.edu/handle/20.500.12876/3009
dc.source.bitstream archive/lib.dr.iastate.edu/aglawdigest/vol11/iss9/1/AgLawDigest_v11n09_01.pdf|||Fri Jan 14 17:48:15 UTC 2022
dc.subject.disciplines Agricultural and Resource Economics
dc.subject.disciplines Agricultural Economics
dc.subject.disciplines Agriculture Law
dc.subject.disciplines Public Economics
dc.title The Hidden Tax Traps In Abandonments
dc.type article
dc.type.genre article
dspace.entity.type Publication
relation.isJournalIssueOfPublication fd2f9ee2-5758-492e-8e37-8df40eecc848
relation.isOrgUnitOfPublication d2bcee6c-7cba-4fa7-bd11-543354ce7b1b
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