63Review LaterA taxpayer sells his uncle a piece of business machinery by a "loan" from...
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Review LaterA taxpayer sells his uncle a piece of business machinery by a "loan" from the uncle to the nephew. The machinery never actually changes hands, and the loan is never paid back. The uncle writes off the cost of the machinery on his taxes. The Franchise Tax Board assesses a NonEconomic Substance Transaction Underpayment Penalty. How much would that penalty beDepends how much tax was avoided by this arrangement 
Review Later
A taxpayer sells his uncle a piece of business machinery by a "loan" from the uncle to the nephew. The machinery never actually changes hands, and the loan is never paid back. The uncle writes off the cost of the machinery on his taxes. The Franchise Tax Board assesses a NonEconomic Substance Transaction Underpayment Penalty. How much would that penalty be
Depends how much tax was avoided by this arrangement
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