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Reference.org
Step transaction doctrine
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<p>The step transaction doctrine is a <a href="/facts/Judicial_doctrine/q6dS3t2d">judicial doctrine</a> in the <a href="/facts/United_States/P0sCdLe5">United States</a> that combines a series of formally separate steps, resulting in tax treatment as a single integrated event. The doctrine is often used in combination with other doctrines, such as <a href="/facts/Substance_over_form/wenagMvU">substance over form</a>. The doctrine is applied to prevent tax abuse, such as <a href="/facts/Tax_shelters/tvKoGCo1">tax shelters</a> or bailing assets out of a <a href="/facts/Corporation/hykSVoWJ">corporation</a>. The step transaction doctrine originated from a <a href="/facts/Common_law/vGVcW4Kf">common law</a> principle in <i><a href="/facts/Gregory_v._Helvering/Sw58vRJU">Gregory v. Helvering</a></i>, 293 U.S. 465 (1935), which allowed the court to recharacterize a tax-motivated transaction. </p>