KPMG PPT - Tax Executives Institute, Inc.
KPMG PPT - Tax Executives Institute, Inc.
KPMG PPT - Tax Executives Institute, Inc.
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Unified Loss Rules<br />
Basis<br />
$100<br />
$50<br />
$150<br />
P<br />
S<br />
$100<br />
$(150)<br />
$(50)<br />
FMV $100<br />
> $50<br />
> $100<br />
Basis $50 gain $100<br />
► P purchases S for $100 and they file a C/R<br />
► S owns an asset worth $100 with a tax basis of $50<br />
► S sells the asset for $100 while a member of the P group<br />
► This increases P’s basis in the S stock to $150<br />
► P sells the stock of S for $100 and sustains a $50 loss<br />
©2012 <strong>KPMG</strong> LLP, a Delaware limited liability partnership and the U.S. member firm of the <strong>KPMG</strong> network of independent member<br />
firms affiliated with <strong>KPMG</strong> International Cooperative (“<strong>KPMG</strong> International”), a Swiss entity. All rights reserved.<br />
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