Before the loss disallowance
rule was issued, a consolidated group selling a subsidiary generally benefited from making a code section 338(h)(10) election jointly with the purchaser if the aggregate inside basis of the subsidiary's assets (net of liabilities) equaled or exceeded its outside stock basis.
It has also disaggregated controls into their constituent components, so there are now more controls to fail and a higher risk of disallowance
48 million to the contractors, of which it sought disallowance
of at least $ 77.
Moreover, precedent exists for adopting such a pro-rata disallowance
rule by regulation, (l8) and by Revenue Ruling.
The appeals court held that the disallowance
of the deduction of the inventory purchased was a change in India Music's accounting method, since the timing of the deduction was altered, causing a change in the treatment of a material item in 2004.
The loss disallowance
rules in effect up until the issuance of Regs.
Under the present expensive car leasing disallowance
, you could only put pounds 262 against the P&L account.
Enron is confident that the Bankruptcy Court will determine the key claim transfers to be assignments and, in light of Citibank's actions, find them fully subject to equitable subordination and disallowance
, to the benefit of the estate and the estate's innocent creditors.
They side-step difficult issues such as how section 274(e)(2) relates to such matters as the rules pertaining to entertainment facilities under section 274(a)(1)(B) and the other disallowance
provisions within section 274, as well as the valuation of fringe benefits.
Notice 2004-58 indicates that for purposes of future regulations (the current regulations sunset March 7, 2005), the IRS and Treasury are studying various approaches to loss disallowance
, including a number of tracing regimes and a basis disconformity approach.
TEI previously advocated the adoption of a "tracing" rule in lieu of the loss disallowance
61-21(g), the employer satisfies the requirements for the exception to the deduction disallowance