- 14 -
382(l)(3)(A)(i) occurs as of the date on which stock ownership is
measured.
2. Practical Consequences of Each Party’s
Interpretation of Section 382(l)(3)(A)(i)
a. Petitioner’s Interpretation
Under petitioner’s interpretation of section
382(l)(3)(A)(i), an individual would be aggregated with (and
therefore could, without any section 382 consequences, sell loss
corporation shares to) not only his spouse, children,
grandchildren, and parents, but also his siblings, nephews,
nieces, grandparents, in-laws, great-grandchildren, aunts,
uncles, first cousins, and great-grandparents.12 It is difficult
to believe that Congress intended to expand the scope of exempted
intrafamily sales so significantly (as compared to both the then-
existing version of section 382, see supra part III.D.1.b., and
the House and Senate versions of revised section 382, see supra
12 As a member of each parent’s family (i.e., in his
capacity as a child of those parents), an individual would be
aggregated with his parents’ children (his siblings),
grandchildren (his nephews and nieces), and parents (his
grandparents). As a member of his spouse’s family (i.e., in his
capacity as her spouse), an individual would be aggregated with
his spouse’s parents (his mother- and father-in-law). As a
member of each child’s family (i.e., in his capacity as a parent
of those children), an individual would be aggregated with each
child’s spouse (his sons- and daughters-in-law) and grandchildren
(his great-grandchildren). As a member of each grandparent’s
family (i.e., in his capacity as a grandchild of those
grandparents), an individual would be aggregated with his
grandparents’ children (his aunts and uncles), grandchildren (his
first cousins), and parents (his great-grandparents). See secs.
382(l)(3)(A)(i), 318(a)(1).
Page: Previous 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 NextLast modified: May 25, 2011