[Code of Federal Regulations]
[Title 26, Volume 11]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.1016-6]

[Page 73]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec. 1.1016-6  Other applicable rules.

    (a) Adjustments must always be made to eliminate double deductions 
or their equivalent. Thus, in the case of the stock of a subsidiary 
company, the basis thereof must be properly adjusted for the amount of 
the subsidiary company's losses for the years in which consolidated 
returns were made.
    (b) In determining basis, and adjustments to basis, the principles 
of estoppel apply, as elsewhere under the Code, and prior internal 
revenue laws.