taxconnections.com
The Rescission Doctrine: Unwinding A Transaction For Tax Purposes | TaxConnections
What are the tax consequences of unwinding a transaction? And just when, if ever, is a taxpayer entitled to the transactional equivalent of a mulligan—a do-over? The ability to unwind a transaction depends upon the particular facts and circumstances of the transaction and the manner in which a transaction is unwound and documented. But where the requirements are met, the so-called “rescission doctrine” offers a potential avenue to unwind a transaction without tax consequences.