The Court of Appeals for the Federal Circuit has confirmed the ruling of several other courts in holding that income from securities bought in part with borrowed funds in a margin account is subject to unrelated business income tax as income from debt-financed property. The case was brought by trustees of the Henry E. and Nancy Horton Bartels Trust for the Benefit of Cornell University, who received the same answer as given by the 2nd Circuit in 2000 to the trustees of the Henry E. and Nancy Horton Bartels Trust for the Benefit of the University of New Haven. The language of the Tax Code is “plain and unambiguous,” the Court said. “It is undisputed that to purchase securities on margin, the...