Ja. Orefice, NONTAXABLE PURCHASE-PRICE REDUCTION VERSUS TAXABLE DISPOSITION - THE INTERPLAY BETWEEN SECTIONS 108(E)(5) AND 453B(F), Journal of corporate taxation, 20(1), 1993, pp. 43-77
The basic application of Sections 108(e) (5) and 453B(f) is considered
, the different tax results that occur by application of each section
is discussed, and the areas of overlap between the two sections are ex
plored. Finally, rules are suggested for determining whether a reducti
on in the liability of the buyer should be viewed as a nontaxable purc
hase-price reduction under Section 108(e)(5) or a taxable disposition
under Section 453B(f).