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Simple English definitions for legal terms

antichurning rule

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A quick definition of antichurning rule:

An antichurning rule is a law that prevents taxpayers from receiving certain tax benefits, such as accelerated depreciation and amortization schedules, if they acquire property without making a significant change in its ownership or use. This rule is meant to discourage the practice of churning, which is when a stockbroker excessively trades a customer's account to earn more commissions instead of acting in the customer's best interest. Churning is illegal under securities laws, but it can be difficult to prove as fraud because there is no specific communication between the broker and the customer about a particular sale of securities.

A more thorough explanation:

The antichurning rule is a tax provision that denies certain tax benefits, such as accelerated depreciation and amortization schedules, to taxpayers who acquire property in a transaction that does not result in a significant change in the property's ownership or use.

In securities, churning refers to a stockbroker's excessive trading of a customer's account to earn more commissions rather than to further the customer's interests. This is considered an abuse of a customer's confidence for personal gain by frequent and numerous transactions, disproportionate to the size and nature of the customer's account.

Under securities laws, churning is illegal and a violation of the Exchange Act. However, because the fraud is the activity as a whole and there is no communication between the broker and the customer about a specific sale of securities, there is not normally a right of action for fraud based on churning.

An example of the antichurning rule would be a taxpayer who acquires a property and claims accelerated depreciation or amortization benefits without making any significant changes to the property's ownership or use. This would be considered an abuse of the tax system and would not be allowed under the antichurning rule.

Another example would be a stockbroker who excessively trades a customer's account to earn more commissions, without regard for the customer's best interests. This would be considered churning and is illegal under securities laws.

These examples illustrate how the antichurning rule and churning are designed to prevent abuses of the tax and securities systems, respectively, and protect taxpayers and investors from fraudulent practices.

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MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
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