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Diversified Financial Solutions
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Enabling the cash flow within the liquidation to be taxed as a money gain, although allowing for loss payments away from that income to get deducted as a standard business price would result in a windfall for the taxpayers.
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This scenario was decided just before the enactment of Sec. 1341 of The inner Earnings Code,[6] even so that statute wouldn't have altered the end result With this particular situation.