- 5 - $10,321,015), which petitioner claimed in connection with its computer software masters exported for reproduction and distribution abroad. Petitioner also claimed FSC commission deductions of $4,049,134 for 1990 and $13,625,222 for 1991 with respect to its export sales of standardized software products. Respondent has allowed these deductions. The dispositive issue to be resolved is whether the royalties attributable to the licensees’ reproduction and distribution of petitioner’s computer software masters outside the United States constitute FTGR’s within the purview of section 924. Resolution of this issue hinges upon whether the licensed computer software masters constitute “export property” within the meaning of section 927(a)(1) and the temporary regulations thereunder. Unless otherwise indicated, all section references are to the Internal Revenue Code in effect for the years in issue. All Rule references are to the Tax Court Rules of Practice and Procedure. FINDINGS OF FACT Some of the facts have been stipulated and are found accordingly. The stipulations of facts and the attached exhibits are incorporated herein by this reference. A. Background Petitioner, a Washington corporation, maintained its principal place of business in Redmond, Washington, at the time the petitionPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
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