Turner Broadcasting System, Inc. and Subsidiaries - Page 18

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          Commissioner, 106 T.C. 257, 267 (1996), revd. on other grounds              
          121 F.3d 977 (5th Cir. 1997), we examined some of the tax                   
          consequences of a simultaneous transaction, stating:  "the                  
          simultaneous nature of a number of steps does not require all but           
          the first and the last (or "the start and finish") to be ignored            
          for Federal income tax purposes."                                           
               The regulations under section 267(f), discussed infra p. 23,           
          would also seem to impliedly acknowledge simultaneous                       
          transactions.  See sec. 1.267(f)-1T(c)(1), Temporary Income Tax             
          Regs., 49 Fed. Reg. 46997 (Nov. 30, 1984), sec. 1.1502-                     
          13(a)(1)(i), Income Tax Regs., discussed infra pp. 31-34.  These            
          regulations dealing with "intercompany transactions" address a              
          situation involving the purchase and sale of an asset between               
          corporations that are members of the same group after the sale              
          transaction but are not necessarily members of the same group               
          before the transaction.  This seems, by logical implication, to             
          contemplate a sale of an asset and the simultaneous association             
          or disassociation of group members.  We are dealing exactly with            

               13(...continued)                                                       
               but comprehends a situation where the rights of the                    
               parties have been previously defined and the execution                 
               of the agreement proceeds with an expedition consistent                
               with orderly procedure. * * * [Emphasis added.]                        

          In the regulations, we have not been able to locate reference to            
          sequential ordering for tax purposes being required when                    
          simultaneous transactions are mentioned.  See also sec. 1.707-              
          3(f), Example (1). (Treatment of simultaneous transfers as a                
          sale.), Income Tax Regs.                                                    




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