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Provide for reconciliation pursuant to title II of H. Con. Res. 14Section 70428 › Proposal

A wholly owned subsidiary may hand over its assets tax free

To provide for reconciliation pursuant to title II of H. Con. Res. 14, section 70428, Sec. 70428. Written by .

A wholly owned subsidiary may hand over its assets tax free

The document says “shall notWho acts: Secretary of the TreasuryHow: statuteSec. 70428 in the PDF
What the document says

“no gain or income resulting from such transfer shall be recognized to either such subsidiary or such entity under such Code, and”

To provide for reconciliation pursuant to title II of H. Con. Res. 14, Sec. 70428

The section provides that where the assets of a trade or business relating to such an activity, held by a subsidiary wholly owned by one of the named entities, are transferred to that entity, including in liquidation of the subsidiary, within 18 months of enactment, no gain or income from the transfer is recognized to either, and all income the entity later derives from that transferred trade or business is exempt from tax.

What the document actually says

“no gain or income resulting from such transfer shall be recognized to either such subsidiary or such entity under such Code, and”

To provide for reconciliation pursuant to title II of H. Con. Res. 14, Sec. 70428
That sentence, in plain words

No gain or income from the handover is counted. That holds for the subsidiary and for the parent body.

What this is about

The handover must happen within 18 months of this law. Winding up the subsidiary counts. Later income from that business is also tax free.

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