A canceled debt is typically income. Did he pay taxes on it?
Did Justice Thomas fail to pay a hefty tax bill? Or has he simply failed to comply with his ethical obligations to disclose gifts?
One of the trials of teaching tax law is the need to write a new exam every semester. But sometimes the real world sends you an exam question. In this case, that question comes courtesy of Supreme Court Justice Clarence Thomas and his fancy RV. Or, more precisely, from the loan he received from his friend Anthony Welters to purchase the luxury vehicle. According to the New York Times, Thomas, saying that the justice and his wife “made all payments to Mr.
One of the things I teach my students is that not everything is as it initially appears. When Welters canceled the debt, it certainly looks as if the amount forgiven should be considered cancellation of debt income and subject to tax. But Welters and Thomas are friends. Just as Welters could have made a gift to Thomas at the start, canceling the debt can be considered an after-the-fact gift. Gifts are excluded from income, so there is no tax consequence for Thomas .
Or maybe Thomas did in fact pay off the loan, as his lawyer says, eliminating the possibility of both CODI and an unreported gift. That would put him in the clear, but I still have a great exam
France Dernières Nouvelles, France Actualités
Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.
Clarence Thomas’s RV loan was forgiven, Senate committee report saysSenate Finance Committee Chair Ron Wyden (D-Ore.) called on Justice Clarence Thomas to say whether he declared the forgiven loan on his tax filings.
Lire la suite »
Clarence Thomas loan for luxury RV was forgiven, Senate Democrats sayA Senate Finance Committee report says Supreme Court Justice Clarence Thomas appears to have only paid interest on a loan before it was forgiven by a wealthy friend.
Lire la suite »
Clarence Thomas’ huge RV loan was forgiven by wealthy businessman, Senate investigation findsSupreme Court Justice Clarence Thomas was essentially given a luxury motorhome worth more than a quarter of a million dollars by a wealthy businessman, according to the U.S. Senate Committee on Fin…
Lire la suite »
RV loan to Clarence Thomas was forgiven, raising tax and ethics questions, Senate report saysSenate Finance Committee Chair Ron Wyden (D-Ore.) called on Justice Clarence Thomas to say whether he declared the forgiven loan on his tax filings.
Lire la suite »
Supreme Court Justice Thomas had $267,000 RV loan forgiven, Senate Democrats sayAll or most of a $267,000 loan obtained by Supreme Court Justice Clarence Thomas to buy a high-end motorcoach appears to have been forgiven.
Lire la suite »
Most of Justice Thomas' loan for RV seems to have been forgiven: Senate DemocratsThis raises tax and ethics questions, report by Senate Democrats says.
Lire la suite »