LTCM’s Profit Motive Harvard Case Solution & Analysis

LTCM's Profit Motive Case Solution

In this note, the findings and the reasoning which are internal in the economy are discussed along with how the penalty is imposed on the decision of the district court for the long term holdings of capital.

The court upheld the IRS's contention a trade between Long Term and a putative investor lacked economic substance and must be disregarded for U.S. income tax purposes. The effect was to refuse the partnership a net, long-term capital loss of $106 million. The court also imposed $16 million of fees for gross inaccuracy.

PUBLICATION DATE: December 02, 2004 PRODUCT #: 205054-HCB-ENG

This is just an excerpt. This case is about FINANCE & ACCOUNTING

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