These assets include: 1) property ‘obtained as a result of” the crime; 2) property “traceable” to the crime; and 3) other “property of equivalent value” owned by the defendant. [read post]

In contrast, under IRC sec. 265, the use of an asset-based apportionment method to allocate interest expense to tax-exempt income is only permitted if the proceeds of indebtedness are not directly traceable to the holding of an instrument that produces tax-exempt income.[6] The Department’s regulatory approach is based on the premise that money is fungible and as a result, unless an exception applies, a taxpayer’s deductible interest expense must be apportioned… [read post]