D.C. Circuit: Gain recognized on sale of partnership interest attributable to inventory not U.S.-source income subject to U.S. tax; Tax Court reversed

Type
:
Obligation
Tax Area
:
Corporate Income Tax
Status
:
Jurisprudence
Qualification
:
Various
Implemented date
:
NA
Country
:
United States
Date added
1 Jul
,
2024
Docxster’s Summary

The DC Circuit Court of Appeals has reversed a Tax Court decision that held that a gain recognized on the sale of a partnership interest was attributable to inventory and therefore subject to US tax. The court found that the gain was not US source income and therefore not subject to US tax. This decision has important implications for taxpayers who are considering selling their partnership interests.

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Source :
KPMG
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