TAXATION OF FINANCIAL INSTRUMENTS (TAX 420) (2 CREDITS)

Discusses the major economic features and federal income tax treatment of basic financial products, such as equity, debt, options, forwards, and futures. Analyzes the taxation of different equity and debt derivatives, such as swaps, caps, collars, and hedging transactions, as well as the economic effect of their use on the financial markets. Demonstrates how the taxation of financial instruments may change depending on the taxpayer’s role as an investor, dealer, broker, or trader. Includes an overview of international tax issues that arise in cross-border transactions involving the above financial struments.

Spring 2008.