Warning

Info

Warning

Info

Warning

Info

LSDefine

Simple English definitions for legal terms

step-transaction doctrine

Read a random definition: donor

A quick definition of step-transaction doctrine:

The step-transaction doctrine is a way the government looks at a series of actions as a whole to figure out how much tax someone owes. They ignore any small steps that were taken just to get to the final result. This is also called the step-transaction approach.

A more thorough explanation:

The step-transaction doctrine is a method used by the Internal Revenue Service (IRS) to determine tax liability. It involves viewing a series of transactions as a whole, rather than as separate events, and disregarding any nonsubstantive, intervening transactions that were taken to achieve the final result.

For example, let's say that a person wants to transfer ownership of a property to their child. Instead of simply gifting the property, they create a complex series of transactions involving multiple entities and transfers of ownership. The step-transaction doctrine would allow the IRS to disregard these intervening transactions and treat the transfer of ownership as a gift, which may have tax implications for both parties involved.

Another example could be a company that wants to avoid paying taxes on a large sum of money. Instead of simply reporting the income and paying taxes on it, they create a series of transactions involving offshore accounts and shell companies. The step-transaction doctrine would allow the IRS to view these transactions as a whole and disregard any nonsubstantive steps taken to avoid taxes, resulting in the company being required to pay the appropriate amount of taxes.

Overall, the step-transaction doctrine is a tool used by the IRS to prevent individuals and companies from using complex transactions to avoid paying taxes. By viewing transactions as a whole and disregarding any nonsubstantive steps taken, the IRS can ensure that everyone pays their fair share of taxes.

stepsister | sterilization

Warning

Info

General

General chat about the legal profession.
main_chatroom
👍 Chat vibe: 0 👎
Help us make LSD better!
Tell us what's important to you
THATS SO FUNNY
i cant i would go crazy
JumpySubsequentDolphin
20:50
i need to know who decided to do that.
JumpySubsequentDolphin
20:50
omg im on a plane weeeee
the devil
youre on a plane??? LSD made the mile high club??
20:50
yo splitterus are you in school already
20:50
it says ur c/o 2027
JumpySubsequentDolphin
20:51
@SplitterusClitterus: HAHAH yes
ur user is hilarioussss and no i just graduated this may and am now applying ---also im out of messages so ill take a lil
20:52
roger dat. see u in heck
im back, r u applying this cycle too
JumpySubsequentDolphin
21:32
this child fell asleep on me
JumpySubsequentDolphin
21:32
im so uncomfortable
just push him off the entire seat
JumpySubsequentDolphin
21:34
LMAOOOO
JumpySubsequentDolphin
21:35
no he’s literally like 8 and he fully just put his head on my bicep and slept
JumpySubsequentDolphin
21:35
he has since moved
22:12
@SplitterusClitterus: me yesterday
gulc baby pls text me back... i miss you ...... :(
22:23
i just went into a discord vc and yelled "YALL I JUST GOT INTO J.M. SCHOOL OF LAW"
22:24
people were getting excited :sob:
22:25
then someone was like "what does jm stand for" and i was like .. well
AHHAHAHAHAHAHHAHAHAHAHAHAH
@JumpySubsequentDolphin: wait this is so cute, also where r u going
JOE MBIDEN
JumpySubsequentDolphin
22:39
@splitty Oregon!
oh yay for what thats so random
JumpySubsequentDolphin
22:45
haha my brother and sister in law live there
so cutie oregon is beatiful
LSD+ is ad-free, with DMs, discounts, case briefs & more.