Poultry Co. Hit With $30M Tax Deficiency Over Stock Sale

Law360, New York (December 11, 2013, 7:55 PM EST) -- The U.S. Tax Court on Wednesday affirmed a $30 million tax deficiency against the world's second-largest poultry manufacturer, saying the company could not claim a worthless security deduction after intentionally abandoning $38 million in previously purchased stock.

Judge Howard Dawson said Pilgrim's Pride Co. could not claim an ordinary income deduction under the Internal Revenue Code's worthless securities provision because the abandonment of securities with a value of $38 million was equivalent to the sale or exchange of a capital asset, subjecting it to capital loss...
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