Article: Treasury to Cancel Tax Breaks in 1988-89 S&L Deals;Action to Nullify Billions of Dollars in Deductions

The Treasury Department yesterday said it would cancel more than $2.5 billion worth of unusual tax breaks that were given to investors who took over failed savings and loan associations from the government in 1988 and 1989.

The tax breaks had allowed S&L buyers to claim several billion dollars in federal income tax deductions for real estate losses that were later reimbursed by the government.

Recipients of the tax breaks include some of the nation's richest investors, among them Revlon Corp. Chairman Ronald Perelman, Texas oil heiress Caroline Hunt, the Bass brothers of both the District and Texas and investors in 95 other S&Ls.

The S&L buyers are virtually the only taxpayers in ...

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