Tax Shelter FAQ

July 28, 2014
What is the Sham Transaction Doctrine?

What is the Sham Transaction Doctrine?

The so-called sham transaction doctrine is “judge made law” which will deny advantageous tax treatment where transactions are carried out primarily for tax avoidance purposes and […]
July 28, 2014
What is the Business Purpose Test?

What is the Business Purpose Test?

The business purpose test requires that a transaction, to be respected, must have a business purpose separate and apart from any associated tax advantages. The business […]
July 28, 2014
What is the Economic Substance Doctrine?

What is the Economic Substance Doctrine?

The economic substance doctrine or “sham in substance doctrine” arose out of common law, but has recently (as of 2010) been codified in IRC § 7701(o), […]
July 28, 2014
What is the substance over form doctrine

What is the substance over form doctrine

Similar to the sham transaction analysis, the so-called “substance over form doctrine” maintains that the “substance,” rather than the form, of a transaction is what governs […]
July 28, 2014

What are the passive loss limitation rules

The passive loss rules prevent losses from investment activities where the taxpayer is merely “passively” involved from offsetting income that the taxpayer actively “materially participates” in […]
July 28, 2014
Does IRC Section 269 Disallow a Net Operating Loss?

Does IRC Section 269 Disallow a Net Operating Loss?

With the enactment of IRC Code Section 269, Congress sought to combat certain tax evading strategies involved with the acquisition of a corporation (or its assets). […]