U.S. Analyzes ‘Great Difficulties’ of Taxing Financial Products
By Richard Rubin
Published December 6 2011 Bloomberg
U.S. lawmakers seeking to overhaul the Internal Revenue Code are examining how derivatives and other financial products should be treated and how investors can structure transactions for more favorable tax results. Financial instruments, including exchange-traded notes and options, are susceptible to manipulation, according to a report by the nonpartisan Joint Committee on Taxation. Taxpayers can structure transactions to defer income, accelerate deductible losses and take advantage of lower capital gains rates.
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