IRS Unveils Rules Limiting Taxpayers' Ability to Duplicate Built-In Losses

For over 50 years, Bloomberg BNA’s renowned flagship daily news service, Daily Tax Report® has helped leading practitioners and policymakers stay on the cutting edge of taxation and...

The Internal Revenue Service Aug. 30 released final rules (T.D. 9633) limiting the ability of taxpayers to duplicate net built-in losses under tax code Section 362(e)(2).
Enacted under the American Jobs Creation Act in 2004, the code section is aimed at preventing taxpayers from importing net built-in losses into the U.S. tax system or duplicating the losses within the United States.
The IRS said the regulations apply to certain tax-free transfers of loss property to corporations and affect all parties to the transaction. Proposed rules (REG-110405-05) on the issue were released in October 2006.
 For full access to this article, please register for a free trial to Daily Tax Report®.