The IRS has finalized regulations that, in certain cases, stop the continued application of Sec. 367(d) when intangible property is repatriated to certain U.S. persons after a previous transfer to a foreign corporation.
Sec. 367(d) governs the treatment of outbound transfers of intangible property by U.S. persons, typically requiring payments over the asset's useful life or upon disposition.
The IRS noted that continuing Sec. 367(d) in some cases could lead to excessive U.S. taxation and deter repatriation of intangible property. Read more.