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P’s S inventory was canceled, and P claimed a funds loss connected to its canceled S stock. Subsequent to S’s bankruptcy, P settled selections owned by S’s personnel with money payments and claimed which the income payments should be standard losses. Nonetheless, the IRS, citing Rev. Rul. 2002-one, concluded in CCA 200942038 the hard cash payments need to create a similar end result just as if P had built the income payments ahead of the bankruptcy. Consequently, the money payments ought to lead to cash reduction to P.
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Tina Orem can be an editor at NerdWallet. In advance of turning out to be an editor, she was NerdWallet's authority on taxes and small business. Her do the job has appeared in a number of local and nationwide outlets. See whole bio.
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