Debit by the Window – Credit out the Window
Mr. Krause was a tax attorney and CPA who built his own Son of BOSS shelter. I have to wonder if he has two sides to his personality. Right now the CPA side is yelling “Language of 752, language of 752 – I knew it couldn’t work. The entry didn’t balance. You can’t get all that basis without crediting something.” The tax attorney side has answers. I can show you an example of a CPA making beautifully balanced entries that make no impression on judges, who are lawyers.
Welcome to the Sausage Factory – RTFI
Because Fidelity High Tech did not use cash cost to compute the stepped-up basis, it was required to attach an explanation to Schedule D. No such explanation was attached. An adequate explanation, as required by the instructions, would have included disclosure of the underlying transaction that resulted in the purported stepped-up tax basis used by Fidelity High Tech.
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Over and over again courts have said that there is nothing sinister in so arranging one’s affairs as to keep taxes as low as possible. Everybody does so, rich or poor; and all do right, for nobody owes any public duty to pay more than the law demands: taxes are enforced exactions, not voluntary contributions. To demand more in the name of morals is mere cant.