Tax of Financial Instruments

Catalog description

In this course students will (i) learn to classify financial instruments for U.S. federal income tax purposes, (ii) learn the federal income tax rules applicable to each financial instrument, and (iii) learn about recent changes in the Internal Revenue Code affecting financial instruments as well as various legislative proposals for changes in the taxation of financial instruments in the U.S. As to (i) by course end, each student should be able to review the terms of a financial instrument and determine whether it is equity, debt, option, notional principal contract or forward contract. As to (ii), the student should then be able to understand the federal income tax treatment of each of the financial instruments described in (i).