Daily Tax Update - May 19, 2016: JCT Releases Technical Explanation of Sen. Wyden's Derivatives Taxation Discussion Draft

JCT Releases Technical Explanation of Sen. Wyden's Derivatives Taxation Discussion Draft:  Today, the Joint Committee on Taxation released a technical explanation for the Modernization of Derivatives Tax Act, the derivatives taxation discussion draft released yesterday by Senate Finance Committee Ranking Member, Ron Wyden (D-OR).  

DTU IN DEPTH:

Senator Wyden Proposes New Regime for Taxation of Derivatives:  On May 18, Senate Finance Committee Ranking Member Ron Wyden (D-OR) released a discussion draft of a new regime for the taxation of derivatives.  The Modernization of Derivatives Tax Act (MODA) is intended to prevent the use of derivatives by taxpayers to avoid taxes and simplify the Tax Code.  The bill would require mark to market and ordinary income tax treatment for all derivative contracts and would source gains and losses to the taxpayer’s country of residence.  The bill is estimated to raise $16.5 billion over 10 years.  For more in depth coverage, click here.