KPMG PPT - Tax Executives Institute, Inc.
KPMG PPT - Tax Executives Institute, Inc.
KPMG PPT - Tax Executives Institute, Inc.
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Proposed CERT Rules<br />
General CERT rules<br />
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Identification of CERT costs for CERIL computation<br />
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MSAs:<br />
► FMV of acquired stock and boot<br />
► Amounts paid to acquire stock including capitalized and disallowed amounts<br />
EDs:<br />
► FMV of distribution<br />
► Amounts paid to acquire stock including capitalized and disallowed amounts<br />
► Proportionate allocation of costs<br />
<strong>Tax</strong>-free transactions<br />
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Transaction must be tested for CERT status regardless of gain or loss recognition<br />
Interaction of EDs and MSAs<br />
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MSAs trump EDs<br />
If part of integrated plan, a distribution will be treated as part of MSA rather than as<br />
an ED<br />
If not an MSA, test as an ED<br />
Limited prior history<br />
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LLY short year rule – prior years are prorated<br />
Short lookback period – Zero is deemed interest incurred in prior years<br />
► Successor rule – Section 381<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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