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Simple English definitions for legal terms

business-purpose doctrine

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A quick definition of business-purpose doctrine:

The business-purpose doctrine is a rule in tax law that says a transaction must have a real business reason, not just be done to avoid paying taxes, in order to get tax benefits. This means that people can't just do things to save money on taxes, they have to have a good reason for doing them that makes sense for their business.

A more thorough explanation:

The business-purpose doctrine is a principle in tax law that requires a transaction to have a legitimate business purpose in order to qualify for favorable tax treatment. This means that a transaction cannot be solely for the purpose of avoiding taxes.

For example, if a company restructures its operations solely to take advantage of a tax loophole, without any legitimate business reason for doing so, the transaction may be subject to scrutiny by the IRS and could be disallowed for tax purposes.

Another example could be a wealthy individual setting up a shell company in a tax haven solely to avoid paying taxes on their income. This would not be considered a legitimate business purpose and could result in penalties and fines.

The business-purpose doctrine is in place to prevent individuals and companies from abusing the tax system and taking advantage of loopholes for their own benefit. It ensures that transactions are conducted for legitimate business reasons and not solely for tax avoidance purposes.

business plan | business record

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Dkk
19:42
SEO is big money
2016 pushed the conservative party into populism irreversibly
Dkk
19:43
Maybe, but if this is populism, then every election is populist.
19:43
@Dkk: yeah register 1 website and every swinging tom dick and harry calls/emails/texts to 'help with seo'. like bruh, if YOU found it, what i am doing is working
Dkk
19:43
Indeed!
19:48
wasp, i think people are hopeful for a gov who at least attempts to care about the common man
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.
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