Word: deduction
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Dates: during 1990-1999
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...medical bills, but the White House rejected that as impossible to get through Congress. Another idea would have been to tax somebody -- employers, employees or both -- on the medical benefits companies provide to their workers. At present most workers pay no tax on the benefits and the employers deduct the insurance premiums from their taxable profits, an arrangement that is thought to cost the government $75 billion a year. But Clinton determined early that nothing labeled as a large tax increase would fly politically. So his planners were driven to a Rube Goldberg scheme of mechanisms designed to hold down...
Some tax experts contend that if Whitewater assumed the mortgage loan on the property, then only the corporation, not its individual owners, could deduct any subsequent interest payments. In some cases, that tax consequence could be avoided through a device called a "mirror loan" or a "back-to-back loan"; Lindsey says he thinks the Clintons used such an arrangement but is not sure. Partner McDougal, however, says he never heard of any such thing. Experts consulted by TIME assert that if there were such a loan arrangement, it should have left a paper trail on the Clintons' tax returns...
...Deducting interest already capitalized by Whitewater? That would have created a tax problem, says Lindsey, only if Whitewater had generated a capital gain, which it never did. (No argument there; the development was a dismal failure.) In that case, says Lindsey, the IRS would have insisted that the interest had been improperly capitalized and must be added to the taxable gain; no gain, no problem. Not so, replies tax expert Bruce Miller, chief managing partner in San Francisco for Kenneth Leventhal & Co., an accounting firm specializing in real estate: "You can't both deduct it and capitalize it, even...
...sharpening a bundle of No. 2 pencils, last Wednesday's meeting of the Financial Accounting Standards Board was the equivalent of Woodstock. At a rare standing-room-only gathering captured by even rarer camera crews, the FASB decided by a 6-to-1 vote to force companies to deduct from their earnings the value of stock options awarded to managers. Stock incentives, which account for as much as 90% of corporate executive income, have come under attack by critics of excessive pay. The rule change, which could reduce declared profits as much as 48%, should discourage companies from being...
...deductibility debate will not be decided by facts and revenues, for at its core are the more peppery issues of politics and fairness that have long made the "three-martini lunch" a hot topic. "A businessman often needs a congenial atmosphere away from the office in which to make his or her pitch," points out Jerry Berns, the 86-year-old co-founder of New York City's "21" Club. Moreover, it does seem unfair to penalize a hardware salesman showing a catalog to a client while sipping Sanka, yet allow a movie mogul to fully deduct...