§ 1060. Special allocation rules for certain asset acquisitions

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1. 1986

   Tax Reform Act of 1986

   Pub. L. 99–514 title VI § 641(a) · 100 Stat. 2085

   Enacted · 26 U.S.C. § 1060

   Added Pub. L. 99–514, title VI, § 641(a), Oct. 22, 1986, 100 Stat. 2282

   Source evidence

   Code source credit
   Added Pub. L. 99–514, title VI, § 641(a), Oct. 22, 1986, 100 Stat. 2282

   Enacted provision · exact public law section
   (a) In General.— Part IV of subchapter O of chapter 1 (relating to special rules for determining basis) is amended by redesignating section 1060 as section 1061 and by inserting after section 1059 the following new section: “SEC. 1060. SPECIAL ALLOCATION RULES FOR CERTAIN ASSET ACQUISITIONS. “(a) General Rule.— In the case of any applicable asset acquisition, for purposes of determining both— “(2) the transferee’s basis in such assets, and “(2) the gain or loss of the transferor with respect to such acquisition, the consideration received for such assets shall be allocated among such assets acquired in such acquisition in the same manner as amounts are allocated to assets under section 338(b)(5). “(b) Information Required To Be Furnished to Secretary.— Under regulations, the transferor and transferee in an applicable asset acquisition shall, at such times and in such manner as may be provided in such regulations, furnish to the Secretary the following information: “(1) The amount of the consideration received for the assets which is allocated to goodwill or going concern value. “(2) Any modification of the amount described in paragraph (1). “(3) Any other information with respect to other assets transferred in such acquisition as the Secretary may find necessary to carry out the provisions of this section. “(c) Applicable Asset Acquisition.— For purposes of this section, the term ‘applicable asset acquisition’ means any transfer (whether directly or indirectly)— “(1) of assets which constitute a trade or business, and “(2) with respect to which the transferee’s basis in such assets is determined wholly by reference to the consideration paid for such assets. A transfer shall not be treated as failing to be an applicable asset acquisition merely because section 1031 applies to a portion of the assets transferred.”

2. 1988

   Technical and Miscellaneous Revenue Act of 1988

   Pub. L. 100–647 § 1006(h)(1) · 102 Stat. 3342

   Substituted · 26 U.S.C. § 1060(b)(3)

   Pub. L. 100–647, § 1006(h)(1), substituted “deems” for “may find”

   Source evidence

   Code amendment note
   Subsec. (b)(3). Pub. L. 100–647, § 1006(h)(1), substituted “deems” for “may find”.

   Enacted provision · exact public law section
   (1) Paragraph (3) of section 1060(b) of the 1986 Code is amended by striking out “the Secretary may find necessary” and inserting in lieu thereof “the Secretary deems necessary”.

3. 1988

   Technical and Miscellaneous Revenue Act of 1988

   Pub. L. 100–647 § 1006(h)(2) · 102 Stat. 3342

   Added · 26 U.S.C. § 1060(d)

   Pub. L. 100–647, § 1006(h)(2), added subsec. (d)

   Source evidence

   Code amendment note
   Subsec. (d). Pub. L. 100–647, § 1006(h)(2), added subsec. (d).

   Enacted provision · exact public law section
   (2) Section 1060 of the 1986 Code is amended by adding at the end thereof the following new subsection: “(d) Treatment of Certain Partnership Transactions.— In the case of a distribution of partnership property or a transfer of an interest in a partnership— “(1) the rules of subsection (a) shall apply but only for purposes of determining the value of goodwill or going concern value (or similar items) for purposes of applying section 755, and “(2) if section 755 applies, such distribution or transfer (as the case may be) shall be treated as an applicable asset acquisition for purposes of subsection (b).”

4. 1988

   Technical and Miscellaneous Revenue Act of 1988

   Pub. L. 100–647 § 1006(h)(3)(B) · 102 Stat. 3342

   Added · 26 U.S.C. § 1060(e)

   Pub. L. 100–647, § 1006(h)(3)(B), added subsec. (e)

   Source evidence

   Code amendment note
   Subsec. (e). Pub. L. 100–647, § 1006(h)(3)(B), added subsec. (e).

   Enacted provision · exact public law section
   (B) Section 1060 of the 1986 Code is amended by adding at the end thereof the following new subsection: “(e) Cross Reference.— “For provisions relating to penalties Tor failure to file a return required by this section, see section 6721.”

5. 1990

   Revenue Reconciliation Act of 1990

   Pub. L. 101–508 § 11323(a) · 104 Stat. 1388

   Inserted · 26 U.S.C. § 1060(a)

   Pub. L. 101–508, § 11323(a), inserted at end “If in connection with an applicable asset acquisition, the transferee and transferor agree in writing as to the allocation of any consideration, or as to the fair market value of any of the assets, such agreement shall be binding on both the transferee and transferor unless the Secretary determines that such allocation (or fair market value) is not appropriate.”

   Source evidence

   Code amendment note
   Subsec. (a). Pub. L. 101–508, § 11323(a), inserted at end “If in connection with an applicable asset acquisition, the transferee and transferor agree in writing as to the allocation of any consideration, or as to the fair market value of any of the assets, such agreement shall be binding on both the transferee and transferor unless the Secretary determines that such allocation (or fair market value) is not appropriate.”

   Enacted provision · exact public law section
   (a) Effect of Allocation Agreements.— Subsection (a) of section 1060 (relating to special allocation rules for certain asset allocations) is amended by adding at the end thereof the following new sentence: “If in connection with an applicable asset acquisition, the transferee and transferor agree in writing as to the allocation of any consideration, or as to the fair market value of any of the assets, such agreement shall be binding on both the transferee and transferor unless the Secretary determines that such allocation (or fair market value) is not appropriate.”

6. 1990

   Revenue Reconciliation Act of 1990

   Pub. L. 101–508 § 11323(b)(1) · 104 Stat. 1388

   1. Added · 26 U.S.C. § 1060(e); 26 U.S.C. § 1060(f)

      Pub. L. 101–508, § 11323(b)(1), added subsec. (e)

   2. Redesignated · 26 U.S.C. § 1060(e); 26 U.S.C. § 1060(f)

      Pub. L. 101–508, § 11323(b)(1), redesignated former subsec. (e) as (f)

   Source evidence

   Code amendment note
   Subsecs. (e), (f). Pub. L. 101–508, § 11323(b)(1), added subsec. (e) and redesignated former subsec. (e) as (f).

   Enacted provision · exact public law section
   (1) In General.— Section 1060 is amended by redesignating subsection (e) as subsection (f) and by inserting after subsection (d) the following new subsection: “(e) Information Required in Case of Certain Transfers of Interests in Entities.— “(1) In general.— If— “(A) a person who is a 10-percent owner with respect to any entity transfers an interest in such entity, and “(B) in connection with such transfer, such owner (or a related person) enters into an employment contract, covenant not to compete, royalty or lease agreement, or other agreement with the transferee, such owner and the transferee shall, at such time and in such manner as the Secretary may prescribe, furnish such information as the Secretary may require. “(2) 10-percent owner.— For purposes of this subsection— “(A) In general.— The term ‘10-percent owner’ means, with respect to any entity, any person who holds 10 percent or more (by value) of the interests in such entity immediately before the transfer. “(B) Constructive ownership.— Section 318 shall apply in determining ownership of stock in a corporation. Similar principles shall apply in determining the ownership of interests in any other entity. “(3) Related person.— For purposes of this subsection, the term ‘related person’ means any person who is related (within the meaning of section 267(b) or 707(b)(D) to the 10-percent owner.”

7. 1993

   Omnibus Budget Reconciliation Act of 1993

   Pub. L. 103–66 § 13261(e)(1) · 107 Stat. 312

   Substituted · 26 U.S.C. § 1060(b)(1)

   Pub. L. 103–66, § 13261(e)(1), substituted “section 197 intangibles” for “goodwill or going concern value”

   Source evidence

   Code amendment note
   Subsec. (b)(1). Pub. L. 103–66, § 13261(e)(1), substituted “section 197 intangibles” for “goodwill or going concern value”.

   Effective date note
   Amendment by Pub. L. 103–66 applicable, except as otherwise provided, with respect to property acquired after Aug. 10, 1993, see section 13261(g) of Pub. L. 103–66, set out as an Effective Date note under section 197 of this title.

8. 1993

   Omnibus Budget Reconciliation Act of 1993

   Pub. L. 103–66 § 13261(e)(2) · 107 Stat. 312

   Substituted · 26 U.S.C. § 1060(d)(1)

   Pub. L. 103–66, § 13261(e)(2), substituted “section 197 intangibles” for “goodwill or going concern value (or similar items)”

   Source evidence

   Code amendment note
   Subsec. (d)(1). Pub. L. 103–66, § 13261(e)(2), substituted “section 197 intangibles” for “goodwill or going concern value (or similar items)”.

   Effective date note
   Amendment by Pub. L. 103–66 applicable, except as otherwise provided, with respect to property acquired after Aug. 10, 1993, see section 13261(g) of Pub. L. 103–66, set out as an Effective Date note under section 197 of this title.

7 of 9 references resolved to an enrolled provision · 2 partial