New Court of Appeals decision allows S corporation stock basis increase for excluded COD income
Article Abstract:
The author discusses the U.S. 3d Circuit Court of Appeals 2000 case Farley which concerned the S corporation stock basis treatment of IRC section 108 cancellation of indebtedness income. The conflict in the Circuit Courts on this issue is discussed.
Publication Name: Taxes: The Tax Magazine
Subject: Business
ISSN: 0040-0181
Year: 2000
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Supreme Court reverses Tenth Circuit in Gitlitz
Article Abstract:
The author discusses the US Supreme Court's decision in Gitlitz, in which the court allowed stockholders to deduct losses by increasing their stock basis by the corporate cancellation of debt income amount.
Publication Name: Taxes: The Tax Magazine
Subject: Business
ISSN: 0040-0181
Year: 2001
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Peracchi and making something out of nothing, or does debt have a zero basis to its maker and further ruminations on the substance and form of transactions
Article Abstract:
The US 9th Circuit Court of Appeals in D.J. Peracchi reversed the Tax Court and allowed an IRC section 357(c) offset of liabilities for a note transferred by the creditor to his own corporation. The court held that the debt was valid and the note could be valued at face value for both the corporation and creditor. The court's factual analysis may have been faulty, but its focus on substance over form addresses the issues in a way prior precedent did not.
Publication Name: Taxes: The Tax Magazine
Subject: Business
ISSN: 0040-0181
Year: 1999
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