Open Transaction Doctrine

Open Transaction Doctrine means, in a corporate liquidation, the doctrine that a shareholder's gain or loss is not determined until the assets that cannot be valued immediately are eventually sold, collected, appraised. Any assets that cannot be valued are assigned a zero value.

See also other Tax Terms and Definitions in U.S.A.

Burnet v. Logan, 2 USTC #736 (USSC, 1931); contrast with the entry closed transaction doctrine.