Son of Boss Explained


D

Dick Adams

I thought I had posted something about this, but could not
find it on my news-server. <G>

This is now it works.
(A) is the taxpayer
(B) is the lender
(C) is the partnership
(D) is the other partner in (C)

1. (A) borrows $2 million from (B).
2. (A) uses $2 million to purchase investments from (B).
3. (A) puts the investment into (C).
4. (C) assumes liability on loan and records tranaction
as follows:
Investment $ 2,000,000
Liability $ 1,500,000
Capital (A) 250,000
Capital (D) 250,000

When the investment is closed out, (A) has a $250,000
tax loss.
 
Ad

Advertisements


Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Similar Threads

SON OF BOSS SETTLEMENT INITIATIVE 0
Son of Boss? I'm intrigued 9
Bosses 7
Son of IR35 26
Predatory sons of bitches! 22
USA Is my boss shady? 2
son's 1040 - AGI of $1,250 9
UK Major Help Needed Boss Won't Sign Off ACA 1

Top