Page 460 - Large Business IRS Training Guides

“Old”
IRC 367(a)(3) - ATB Exception

367(a)(1) provides, generally, if a U.S.
• IRC
person transfers
property to a foreign
corporation under
certain non-recognition
(e.g., IRC 351) the U.S. person
provisions
recognize gain currently
must
rules apply for transfers of
• Special
under IRC 367(d)
intangible property
to the 2017 TCJA, a major exception
• Prior
rule under IRC 367(a)(1) was
to the general
business (“ATB”)
the active trade or
exception under
IRC 367(a)(3)
• The ATB
exception provided, subject to
certain exceptions,
a general rule that gain
IRC 367(a)(1) did not
recognition under
apply
to property transferred to a FC for its
use in the ATB
outside the U.S.
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