October 16, 2019

October 15, 2019

Subscribe to Latest Legal News and Analysis

October 14, 2019

Subscribe to Latest Legal News and Analysis

Third Circuit Upholds One Deduction Tax Court Ruling

In Duquesne Light Holdings, Inc. v. Commissioner, 3d Cir., No. 14-01743 (June 29, 2017), the US Court of Appeals for the Third Circuit upheld a Tax Court decision that disallowed a second deduction for the same economic loss claimed by a consolidated group with respect to stock of a member. The court concluded that the “loss duplication” regulations for member stock in effect at the time of the transaction were sufficiently clear to disallow the second deduction. Although the result is not surprising, the case is noteworthy because it extensively discusses the Ilfeld doctrine (double deductions cannot be claimed for the same economic loss in the absence of clear authorization under the language of the Code or regulations), and implies that the doctrine may be limited to consolidated return issues.

© 2019 McDermott Will & Emery

TRENDING LEGAL ANALYSIS


About this Author

Michael Wilder, Washington DC Corporate international tax lawyer, McDermott Will
Partner

Michael J. Wilder is a partner in the law firm of McDermott Will & Emery LLP and is based in the Firm’s Washington, D.C. office.  He focuses his practice on corporate and international tax issues.  He has extensive experience in structuring corporate mergers and dispositions, spin-offs, liquidations, cross-border transfers, and financing instruments, as well as in the areas of consolidated returns, bankruptcy, and insolvency tax matters.   He is a frequent speaker on these issues.  Michael represents a number of clients in seeking private letter rulings from the...

202-756-8159