Changing Tax Treatment in Subsequent Years Is Not Ex Post Facto Legislation, and Short-Term Capital Gains Are Not Ordinary Income For All Purposes
Author: Kevin A. Diehl.
Source: Volume 22, Number 04, March/April 2009 , pp.42-47(6)
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Abstract:
In Ziegler v. Commissioner, tax law could change the treatment of ongoing investment transactions established before the law was passed for tax periods after the law was in effect without creating an ex post facto law. In Imprimis Investors LLC v. U.S., the fact that short-term capital gains are often treated as ordinary income could not make them into ordinary income for allocation purposes.Keywords: Ex Post Facto; short-term capital gains; Section 469(a); passive activity losses;
Affiliations:
1: Western Illinois University.