Nilo Inc.sold an asset to PPQ Partnership,which is unrelated to Nilo.PPQ immediately sold the property to Nilo Western Inc.,which is a 100% controlled Nilo subsidiary.The IRS could treat the two sales as one sale of the asset by Nilo to Nilo Western by applying the:

Question

Quizplus · Accepted Answer

The step transaction doctrine allows the IRS to collapse a series of formally separate steps into a single transaction if those steps are in substance integrated, interdependent, and focused toward a particular result. In this case, the IRS could view the transactions as a single sale from Nilo to its subsidiary.

Nilo IncSold an Asset to PPQ Partnership,which Is Unrelated to Nilo