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3. Section 1.170A-13(c)(7)(xi)(A), Income Tax Regs.
Section 1.170A-13(c)(7)(xi)(A), Income Tax Regs., describes
circumstances in which the market quotations requirement is met
for purposes of exempting contributions of certain publicly
traded securities from the substantiation requirements. See sec.
1.170A-13(c)(1)(i), Income Tax Regs. Section 1.170A-
13(c)(7)(xi)(A), Income Tax Regs., does not purport to be
applicable to the interpretation of the term “qualified
appreciated stock”. Nevertheless, given our conclusion as to the
consistent meaning of the market quotations requirement, we
believe that section 1.170A-13(c)(7)(xi)(A), Income Tax Regs.,
also describes circumstances in which the market quotations
requirement is met for the purpose of determining whether the
shares constituted qualified appreciated stock.5
In the petition, petitioners aver that the market quotations
requirement was satisfied by virtue of the Bancorp shares’
satisfying either subdivision (1) or (2) of section 1.170A-
13(c)(7)(xi)(A), Income Tax Regs. During the trial of this case,
however, petitioners conceded that, on the transfer date, the
Bancorp shares did not satisfy any of the subdivisions of section
5 We need not be concerned with the special rule provided
in sec. 1.170A-13(c)(7)(xi)(B), Income Tax Regs., which applies,
among other conditions, only if the issue of a security in
question is regularly traded in a market that is reflected by the
existence of an interdealer quotations system for the issue.
That condition was not here met. See sec. 1.170A-
13(c)(7)(xi)(B)(2)(ii), Income Tax Regs.
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