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Simple English definitions for legal terms

step-transaction doctrine

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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.

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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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