(8) Complete liquidation of the transferred company. The distribution of all the assets of the divested company, to which Section 337 applies, and the related exchange of the transferred shares, to which Section 332 applies, are not triggering events if the U.S. assignor enters into a new profit recognition agreement. If the transferred company is a national company, see paragraphs 1.367 and (o) (o) (4) of this section. See (q) (2) (ix) of this section to illustrate the rules set out in paragraph (8) in this paragraph. (iii) available. Unless there are provisions in b) (1) (iii) of this section, an order includes any transfer that would constitute an injunction to the use of the internal income code. A provision involves an indirect transfer of the company`s stock in accordance with the provisions of S. 1.367 a)-3 (d). Except in accordance with paragraph 1 of paragraph 1 of this section, a provision does not include maintaining a division of ownership with respect to the stocks covered by Section 301 (including section 302 (d).
In paragraphs (n) (2) and o) (3) of this section, you will find rules that apply when reinforcement is recognized in accordance with section 301(c) (3). A total or partial sale by temper sale catches up (according to Section 453) is considered a provision in the year of the tempe catch-up sale. (B) Result. TFC`s allocation of TFD stock in Year 4 is a triggering event in paragraph (j) (1) of this section. The payment does not terminate the profit recognition agreement covered in paragraph o) (5) of this section, because after payment, the base of the TFD stock is greater in the hands of UST (120x) than the base of the TFD stock at the time of the first transmission (80x). However, if the UST reduces the base of the TFD stock to 80x (expected at point (o) (5) (iii) of this section), the recognition agreement expires with no additional effect. If the UST does not choose to reduce the base of the TFD stock, see paragraph (k) (14) of this section. When a U.S. person transfers ownership to a foreign company in Section 332, 351, 354, 356 or 361, the foreign company is generally not treated as a capital company to determine the profit of the U.S. transferor on the transfer.