Tax Court Rejects IRS’s Code Sec. 367(d) Argument



Lowell Yoder wrote this bylined article on two recent cases relating to Section 367(d) taxation of a domestic corporation’s transfer to a foreign subsidiary of intangible property in an otherwise tax-free transfer. The Tax Court in the cases rejected the IRS’s argument that taxable asset transfers occurred in light of the putative transferee’s subsequent earning of entrepreneurial profits.