Gain Recognition Agreement Form 8838

(B) Result. The provision of the TFC stock for year 3 is a triggering event referred to in paragraph (j) (4) of this section. The investment agreement does not terminate the profit recognition agreement covered in paragraph o) (1) (i) of this section, since the basis of each TFC share received in exchange for the TFD stock in the initial transfer is 5.5x, which exceeds the base of the TFD stock at the time of the first transfer. However, in accordance with paragraph o) (1) (iii) of this section, to meet the basic conditions set out in paragraph o) (1) (i) of this section, the UST may reduce to 0 X the basis of the 10 shares of the TFC share received in exchange for the TFD share. If UST reduces the base of the 10 TFC shares to 0 X, the TFC stock provision referred to in paragraph (o) (1) (i) in this section is not a triggering event, but terminates the benefit recognition agreement with no further effect. (4) Orders for the bulk of all assets of a capital company transferred to the national level. Unless otherwise provided in this paragraph (o) (4), the profit recognition agreement ends with no additional effect if, for the most part, all the assets of the transferred capital company are transferred in a transaction that includes the total profit made in the taxable year of the transfer and is included in the taxable income, but only if, at the time of the first transfer , the U.S. assignor held shares in the divested company that met the requirements of Section 1504 (a) (2) and that the U.S. assignor and the divested company were members of the same consolidated group.

If the initial transfer were part of an indirect transfer, the profit recognition agreement ends with no further effect if, for the most part, all the assets of the divested company (including Section 1.367 A)-3 (d) (2) (v)) are sold in a transaction that will account for the total profit made during the fiscal year of the transfer and would include taxable income. , but only if, at the time of the first transfer, the U.S. assignor held shares in the divested company that met the requirements of Section 1504(a) (2) (. B, for example, in the case of a restructuring described in Section 368 (a) (a) (A) under Section 368,a),2). E) members of the same group. (i) if there has been a profit recognition event in a taxable year, if the profit is not reported, or if additional taxes or interest are paid under the Benefit Recognition Agreement; and (ii) special rule. Except as a provision in paragraph (e) (4) (iii) of this section, where the distribution company markets property used by the foreign distribution company for the conduct of a business or business activity in the United States and the distributing company does not recognize any profit or loss of that distribution under Start Printed Page 68774. 1.367 (e)-2(2)).i) with respect to this property, The distribution company may meet the requirements of this section by excluding Parts I and II of Form 926, Part III indicates that the information requested in Form 926 is contained in a statement provided for in Section 1.367(e) 2 b)2(2) (2) (C) (2) (2) and a signed copy of Form 926 in the U.S.