![]() ![]() It is likely several thousand taxpayers used the shelter before 2000 when the Treasury and the Congress began taking steps to block its tax benefits. All resembled an earlier shelter marketed as "BOSS," short for "Bond and Option Sales Strategy." Beginning in the late 1990s, advisers at some accounting and law firms marketed the Son of BOSS transaction in various forms. The shelters involved creating paper losses to offset real gains. ![]() The result was an inflated basis that allowed the taxpayer to claim a loss from the partnership's subsequent unwinding. The partnership contribution rules at the time ignored the contingent liability that effectively offset the asset. Treasury officials to describe a variety of tax shelters that sought to wipe out taxes on capital gains from the sale of a business or other appreciated asset for example, by artificially inflating the basis of a partnership by contributing an asset paired with a contingent liability. There were at least 7 legal cases still unde16. Its informal name comes from the name of an earlier tax shelter, BOSS (" Bond and Option Sales Strategy"), which it somewhat resembles. Son of BOSS is a type of tax shelter ustates, one that was designed and promoted by tax advisors in the 1990s to reduce federal income tax obligations on capital gains from the sale of a business or other appreciated asset. ![]()
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