¹Alternatively, taxpayers can elect under Sec. 108(b)(5) to first reduce the adjusted bases of depreciable property held at the beginning of the tax year following the tax year of cancellation.

²TD 9089 (8/29/03).

³The temporary regulations also contain special rules on the application of Sec. 108(b)(5), which are beyond the scope of this article.

⁴See Temp. Regs. Sec. 1.1502-28T(a)(2)(ii).

⁵See Temp. Regs. Sec. 1.1502-28T(c), Example 1.

⁶Notwithstanding the apparent concerns when the common parent is the debtor, the examples focus on situations involving a debtor subsidiary.

⁷TD 9080 (7/18/03).

⁸See Temp. Regs. Sec. 1.108-7T(c).

⁹Rev. Rul. 2001-46, 2001-2 CB 321.

¹⁰TD 9071 (7/8/03).

¹¹TD 9063 (6/26/03).

¹²TD 9048 (3/11/03).

¹³Rite Aid Corp, 255 F3d 1357 (Fed. Cir. 2001), rehg den.

¹⁴For additional discussion on the loss-disallowance rules, see Schneider and Chui, Loss Disallowance Rules, The Story Continues, Tax Mngmt Memo. 13 (6/30/03); Thompson and Stewart, Temp. Regs. Limit Duplicative Stock Losses, this issue.

¹⁵Rev. Proc. 2003-48, IRB 2003-29, 86.

¹⁶Rev. Rul. 2003-74, IRB 2003-29, 77.

¹⁷Rev. Rul. 2003-75, IRB 2003-29, 79.

¹⁸Rev. Rul. 2003-52, IRB 2003-22, 960.

¹⁹Rev. Rul. 2003-18, IRB 2003-7, 467.

²⁰Rev. Rul. 2003-38, IRB 2003-17, 811.

²¹See Regs. Sec. 1.355-3(b)(3)(ii).

²²Rev. Rul. 2003-55, IRB 2003-22, 961.

²³See, e.g., Hazeltine Corp., 89 F2d 513 (3d Cir. 1937).

²⁴Rev. Rul. 2003-51, IRB 2003-21, 938.

²⁵The ruling cites Rev. Rul. 77-449, 1977-2 CB 110, which permits successive Sec. 351 transfers.

²⁶Notice 2003-65, IRB 2003-40, 747; see Yecies, Tax Clinic, Safe Harbors for Identifying Sec. 382 RBIG or RBIL, this issue.