QSST regs create trap for the unwary. (qualified subchapter S trust): An article from: The Tax Adviser

This digital document is an article from The Tax Adviser, published by American Institute of CPA's on September 1, 1996. The length of the article is 916 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.

From the supplier: A change in the IRS's tax treatment of gain from the sale of S corporation stock by a qualified subchapter S trust may result in gain being taxed to the beneficiary and loss being trapped in the trust. Gain and loss will be split in this way if the corporation has appreciated assets with value exceeding inside basis by more than the excess of stock value over outside basis, the corporation sells the appreciated assets and then the corporation is liquidated. The risk of this occurring can be minimized by giving the trustee the authority to liquidate the trust.

Citation Details
Title: QSST regs create trap for the unwary. (qualified subchapter S trust)
Author: Marvin D. Hills
Publication:The Tax Adviser (Magazine/Journal)
Date: September 1, 1996
Publisher: American Institute of CPA's
Volume: 27 Issue: n9 Page: 542(2)

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