Bonus unit anti-abuse rule treats losses on short-term purchases as cost of allotted bonus units. A new mechanism in section 94 treats losses from purchases made within three months prior to the record date and sold within nine months after that date-where additional units were allotted without payment and some such allotted units are still held-as ignored for income computation and deemed to be added to the cost basis of the allotted units retained on the sale date.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Bonus unit anti-abuse rule treats losses on short-term purchases as cost of allotted bonus units.
A new mechanism in section 94 treats losses from purchases made within three months prior to the record date and sold within nine months after that date-where additional units were allotted without payment and some such allotted units are still held-as ignored for income computation and deemed to be added to the cost basis of the allotted units retained on the sale date.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
Join Channel
TaxTMI 
