Crown Loan
Rich families stay rich by exploiting loopholes in the tax code. Which was why, in 1984, Congress and the Supreme Court shut down the loopholes that made Crown Loans a popular vehicle for families to pass along wealth.
Named for the industrialist Henry Crown, this type of loan provides money to a lendee without an interest rate or a maturity date. Crown was giving his children and grandchildren money under the guise of a loan, but never demanding payment. The loan would effectively only be collected on demand of the lender. Of course, the lender didn't demand payment, a way for him to dodge gift taxes.
The loans were allowed after the U.S. Court of Appeals ruled in favor of one of Crown's son's in 1978. The IRS had been seeking gift taxes on these loans. It would take the Supreme Court six years to review this case, and the Tax Reform Act of 1984 shut down loopholes on interest rates that were below market value, effectively ending the practice of Crown Loans.
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Finance: What is a Crown Jewel?3 Views
Finance allah shmoop What is a crown jewel Well here's
a crown jewels and here's crown jewels and then there
are you know the family jewels What do they all
have in common High value hsia ching So in wall
street speak a crown Jewels usually refers to a company
that owns many assets many divisions but has one that
is particularly valuable like disney owns a ton of content
assets from mickey teo mustafa but many feel that their
acquisition of the star wars franchise is their crown jewel
all right another example Kato the car collector owns hundreds
of cars from all over history but his crown jewels
is this Nineteen seventy eight magnum p i ferrari This
one actually works all right and another one on the
internet offers hundreds of online education options But of course
it's crown jewel is right here at him up So 00:01:00.382 --> [endTime] yeah you get the picture