The U.S. Court of Appeals for the Third Circuit today affirmed a decision of the U.S. Tax Court, that $199 million of losses claimed by the taxpayer for 2001 and for 2002-2003 were deducted for the same underlying economic loss in the form of an underlying decline in value of subsidiaries.
The Third Circuit concluded that the Tax Court had properly applied the Ilfeld doctrine that effectively bars a taxpayer from the practical equivalent of a double deduction under the loss duplication rules for consolidated returns.
Read the Third Circuit’s decision [PDF 160 KB] that includes a dissenting opinion. The case is: Duquesne Light Holdings, Inc. v. Commissioner, No, 14-1743 (3d Cir. June 29, 2017)
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