- 18 -
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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