Tax Class

Almost everybody knows about the deduction for charitable contributions. But very few students come to tax class knowing much about how it works or having considered why it might be complicated. And yet, the sheer length of section 170 hints at its complexity.

In this episode, Professor Brian Galle discusses three mechanics of the rules: the overall cap on deductible contributions, the interaction of the deduction with realization ...

What can you write off as a business expense? At the most general level, section 162 says “all the ordinary and necessary expenses” for the trade or business, as long as they are not disallowed elsewhere in the Code. But what is “ordinary” and what is “necessary”?

Professor Steven Dean points out that the “ordinary” requirement, by definition, favors the common practice and, therefore, disfavors the minority. What may seem merely s...

As highlighted in previous episodes, the Internal Revenue Code provides a long list of transactions that are or are not income. The Code itself does not define what constitutes income. This conceptual question matters not only to income tax calculation, but also to Congress's power to impose an income tax under the Sixteenth Amendment. The definition of income—particularly, whether "realization" is a necessary element—has troubled ...

Income also includes non-cash compensation.  Whether that is in the form of tangible property or stock options, section 83 rules it all.  Section 83 also allows the taxpayer to elect when and how to account for the property received.  The seemingly mechanic election puts the ball in the taxpayer’s hands to figure out the most advantageous tax treatment.

 In this episode, Professor Sarah Lawsky uses section 83 to illustrate her uniq...

The Code defines gross income as “all income from whatever source derived” unless otherwise provided.  But what are some kinds of income excluded from such a broad definition?  Section 104 provides that compensation for personal injuries and sickness, among other things, is excluded from gross income. 

In this episode, Professor Heather Field demonstrates the art of statutory interpretation by dissecting a short but not-so-simple p...

Computing gross income is the first step in figuring out income tax. The broad language used in section 61 of the Internal Revenue Code is not helpful in answering what constitutes “gross income.”  

While payments for wages or salaries are almost always counted as gross income, not all money received is income (e.g., borrowing money is not income).  Vice versa is also true—you can have income without receiving any money (e.g., canc...

The first class of the semester is not just about the syllabus.  Professor Miranda Perry Fleischer uses her first class to lay the foundation for the rest of the semester, as well as to convince any hesitant students that federal income tax is not just about numbers.  In this episode, Professor Fleischer explains how she uses a fictitious bad tax law to illustrate some of the big concepts in tax policy.

Professor Fleischer is the A...

Welcome to Tax Class by Ben Leff, professor of law at the American University Washington College of Law.

In this series, Professor Leff interviews some of the best tax scholars and professors around the country about one day in their introductory tax law class.  In each episode, the guest professor will discuss their path to academia, dissect the big concepts for the unit, and divulge their teaching method. 

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