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“trigger” presupposes some type of transaction in the stock of
the loss corporation, see H. Conf. Rept. 99-841 (Vol. II), supra
at II-174, 1986-3 C.B. (Vol. 4) at 174, the requisite increase in
stock ownership within the resulting testing period need not be
attributable to a purchase, redemption, or, indeed, any
transaction in which shares actually change hands, see sec.
382(g)(1)(A) and (B).
b. Consequences for Family Attribution: Changes in
Family Status
Under a system in which an increase in one’s percentage
ownership of a corporation need not be associated with a
transaction in which shares actually change hands, a
straightforward application of the family attribution rules of
section 318(a) could produce “artificial” ownership increases;
i.e., ownership increases solely attributable to changes in
family status. For instance, under the attribution rules, the
ownership percentage of an individual who marries the sole
shareholder of a loss corporation would thereby increase from
zero to 100 percent. If the wedding occurred during a testing
period (which could be triggered, for instance, by the subsequent
issuance of a relatively small number of additional shares to a
key employee), then the increase in the nonshareholder spouse’s
deemed ownership percentage would result in an ownership
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