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2nd, timing techniques to stop taxes, like deferring the sale of an appreciated asset below The present tax regime or borrowing in tiny increments underneath a disbursement routine, are curtailed.
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In sum, a repayment realization rule would constitute a radical change in just how we conceptualize tax realization occasions—but it might symbolize a workable coverage middle ground in between present tax policy and anything just like a prosperity tax, which might stand on doubtful authorized footing.
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At repayment, the borrower has shown use of liquidity which makes it difficult for that borrower to create the argument which the fundamental wealth hasn't been recognized.
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