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Even if, however, the discount income was the corresponding
item of income, the discount income would have to be part of an
intercompany transaction in order for the consolidated return
regulations to apply. See sec. 1.1502-13(b)(2). Section 1.1502-
13(a)(1), Income Tax Regs., defined the term "intercompany
transaction" as "a transaction during a consolidated return year
between corporations which are members of the same group
immediately after such transaction".
GMAC received the discount income from either a retail
customer or a fleet customer. GMAC acquired the right to receive
the discount income from an independent GM dealer when the
independent GM dealer assigned the RISC/fleet loan to GMAC.
Neither the retail/fleet customer nor the independent GM dealer
was part of the GM group; therefore the transactions between GMAC
and retail/fleet customers and GMAC and independent GM dealers
were not intercompany transactions.
The intercompany transaction rules of the consolidated
return regulations and the examples therein contemplated a
transaction solely within the consolidated group between members
of the group and not a situation where income comes from outside
the group in a transaction involving third parties. See section
1.1502-13(a)(1), (b)(2), (h) Examples (3), (13), (16), Income Tax
Regs., and the discussion of these examples supra.
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