Listed Transaction #5 (BOSS)
''BOSS'' (Bond-and-Option Sales Strategy)
The IRS is of the view that arrangements like those above do not produce an allowable loss. The IRS views the taxpayers as having engaged in a series of contrived steps to claim tax losses for capital outlays that they have in fact recovered. According to the IRS, such losses are artificial, not allowable for federal income tax purposes.
If you believe that you may have engaged in a transaction that is the same or substantially similar to the transaction described above, Federal law may require you to disclose your and other parties' participation in any such "listed transaction" on IRS Form 8886. For more information about Federal law requirements, please contact us.