- 44 -
agreed purchase price. Respondent argues that section 1060 is
applicable to the Reorganization Agreement and that the
legislative history underlying section 1060 states that taxpayers
must report consistent positions as required by the Danielson
case. Petitioners contend that the provision in section 1060
that binds parties to allocations of consideration among assets
or to the value of assets set forth in a written agreement does
not apply to the instant case because the parties did not agree
in a written agreement as to the allocation of consideration and
because the Acquisition occurred prior to the October 9, 1990,
9 (...continued)
(1) The amount of the consideration received for
the assets which is allocated to goodwill or going
concern value.
(2) Any modification of the amount described in
paragraph (1).
(3) Any other information with respect to other
assets transferred in such acquisition as the Secretary
deems necessary to carry out the provisions of this
section.
(c) Applicable Asset Acquisition.--For purposes of this
section, the term "applicable asset acquisition" means any
transfer (whether directly or indirectly)--
(1) of assets which constitute a trade or
business, and
(2) with respect to which the transferee's basis
in such assets is determined wholly by reference to the
consideration paid for such assets.
A transfer shall not be treated as failing to be an
applicable asset acquisition merely because section 1031
applies to a portion of the assets transferred.
The amendment to sec. 1060(a) made by the Omnibus Budget
Reconciliation Act of 1990 (OBRA 90), Pub. L. 101-508, sec.
11323(a), 104 Stat. 1388-464, is not reflected above inasmuch as
it applies generally to acquisitions after Oct. 9, 1990. But see
infra note 10.
Page: Previous 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 NextLast modified: May 25, 2011