Law.com Subscribers SAVE 30%
Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.
ELA Responds to Proposed Budget Legislation
On Jan. 13, 2004 the Treasury Department announced a series of legislative proposals, included in the president's fiscal year 2005 budget, for the purpose of closing loopholes, halting several abusive tax avoidance transactions, and simplifying the tax code. Of particular interest to the leasing community is the proposal: “Stop Abusive Leasing Transactions with Tax-Indifferent Parties.” According to the Treasury Department's proposal, taxpayers increasingly have used purported leasing transactions to “acquire” significant tax benefits from a tax-indifferent party, such as a municipal transit authority or foreign government, in exchange for a modest fee. These transactions do not involve any useful economic activity, such as the acquisition or financing of business assets, and instead simply move a tax benefit, including depreciation, from a party that cannot use it (the municipality or foreign government) to a party that can (the taxpayer). Congress sought to limit these transactions in 1984, but these rules have proved ineffective over time. The administration's proposal would sharply limit the tax benefits claimed by the taxpayer in these transactions.
The Equipment Leasing Association of America (ELA) issued a response to the Treasury Department's 2005 proposed budget plan to stop leasing transactions with “tax-indifferent parties,” citing clear negative consequences that compromise many organizations' abilities to finance projects and infrastructure. Michael Fleming, president of ELA, stated that the Treasury Department's proposal “will take away the ability for tax-exempt entities, such as hospitals, charities, and schools, already strapped for capital, to lease equipment and severely limit their financing options. Calling the proposal “poorly thought out” Fleming further added that it would “raise the cost of making needed assets and services available to these organizations.”
Bankruptcy Sales: Finding a Diamond In the Rough
There is no efficient market for the sale of bankruptcy assets. Inefficient markets yield a transactional drag, potentially dampening the ability of debtors and trustees to maximize value for creditors. This article identifies ways in which investors may more easily discover bankruptcy asset sales.
Judge Rules Shaquille O'Neal Will Face Securities Lawsuit for Promotion, Sale of NFTs
A federal district court in Miami, FL, has ruled that former National Basketball Association star Shaquille O'Neal will have to face a lawsuit over his promotion of unregistered securities in the form of cryptocurrency tokens and that he was a "seller" of these unregistered securities.
Why So Many Great Lawyers Stink at Business Development and What Law Firms Are Doing About It
Why is it that those who are best skilled at advocating for others are ill-equipped at advocating for their own skills and what to do about it?
Blockchain Domains: New Developments for Brand Owners
Blockchain domain names offer decentralized alternatives to traditional DNS-based domain names, promising enhanced security, privacy and censorship resistance. However, these benefits come with significant challenges, particularly for brand owners seeking to protect their trademarks in these new digital spaces.
Coverage Issues Stemming from Dry Cleaner Contamination Suits
In recent years, there has been a growing number of dry cleaners claiming to be "organic," "green," or "eco-friendly." While that may be true with respect to some, many dry cleaners continue to use a cleaning method involving the use of a solvent called perchloroethylene, commonly known as perc. And, there seems to be an increasing number of lawsuits stemming from environmental problems associated with historic dry cleaning operations utilizing this chemical.