Tufts and the Evolution of Debt-Discharge Theory

76 Pages Posted: 29 Jan 2009

See all articles by Deborah A. Geier

Deborah A. Geier

Cleveland State University, Cleveland-Marshall College of Law

Date Written: January 27, 2009

Abstract

This 1992 article first explores how the concept of - 61(a)(12) debt-discharge income evolved over time from a "balance sheet improvement" rationale to one recognizing that what is properly measured under - 61(a)(12) is the prior receipt that would have been a wealth accession at that time if not for the absolute obligation to repay (without regard to balance sheet consequences). The article then goes on to explore how the Supreme Court created unnecessary mischief in Tufts v. Commissioner, 461 U.S. 300 (1983), by failing to recognize the critical differences between - 1001 "gain" or "loss" and - 61(a)(12) debt-discharge income.

Keywords: debt-discharge income, COD income, Tufts, recourse debt, nonrecourse debt

JEL Classification: H20, H24

Suggested Citation

Geier, Deborah A., Tufts and the Evolution of Debt-Discharge Theory (January 27, 2009). Florida Tax Review, Vol. 1, p. 115, 1992, Cleveland-Marshall Legal Studies Paper No. 1333818, Available at SSRN: https://ssrn.com/abstract=1333818

Deborah A. Geier (Contact Author)

Cleveland State University, Cleveland-Marshall College of Law ( email )

2121 Euclid Avenue, LB 138
Cleveland, OH 44115-2214
United States
216-687-2341 (Phone)
216-687-6881 (Fax)

HOME PAGE: http://facultyprofile.csuohio.edu/csufacultyprofile/detail.cfm?FacultyID=D_GEIER

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
86
Abstract Views
685
rank
389,126
PlumX Metrics