Domulewicz v. Comm'r
United States Tax Court
As part of a Son-of-BOSS transaction designed to create a basis of approximately $ 29.3 million in publicly traded stock purchased at a relatively minimal cost, P entered into a short sale of U.S. Treasury notes and contributed the proceeds of that sale and the related obligation to a partnership (DIP) in which P was one of three partners.
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As part of a Son-of-BOSS transaction designed to create a basis of approximately $ 29.3 million in publicly traded stock purchased at a relatively minimal cost, P entered into a short sale of U.S. Treasury notes and contributed the proceeds of that sale and the related obligation to a partnership (DIP) in which P was one of three partners. Neither P nor DIP treated the obligation assumed by DIP as a liability under sec. 752, I.R.C., and P did not compute his basis in DIP by taking the obligation into account. After DIP satisfied the obligation and received contributions of the publicly traded…
1Opinion of the Court
OPINION
Laro, Judge:
This is a Son-of-BOSS case that is currently before the Court on petitioners’ motion to dismiss for lack of jurisdiction. See generally Kligfeld Holdings v. Commissioner, 128 T.C. 192 (2007), and Notice 2000-44, 2000-2 C.B. 255, for a general description of Son-of-BOSS cases. Petitioners petitioned the Court to redetermine respondent’s determination of a $2,398,491 deficiency in their 1999 Federal income tax and a $946,750.80 accuracy-related penalty under section 6662(a).1 Those determinations were reflected in an affected items notice of deficiency issued to petitioners…
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