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26 U.S.C. § 1060 — Special allocation rules for certain asset acquisitions
Federal law — U.S. Code and appendices · legal_authorities
**(a) General rule** In the case of any applicable asset acquisition, for purposes of determining both—
(1) 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). 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.
**(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 section 197 intangibles.
(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 deems 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
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Source file: Laws/federal/codes/united-states-code/title-26/section-1060-special-allocation-rules-for-certain-asset-acquisitions--728f905fea.md
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Source location: Title 26, Chapter 1, § 1060; chapter-001-normal-taxes-and-surtaxes.md
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**(a) General rule** In the case of any applicable asset acquisition, for purposes of determining both—
(1) 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). 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.
**(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 section 197 intangibles.
(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 deems 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.
**(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 section 197 intangibles 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).
**(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)(1)) to the 10-percent owner.
**(f) Cross reference** For provisions relating to penalties for failure to file a return required by this section, see section 6721.
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Federal law — U.S. Code and appendices · legal_authorities
(1) For nonrecognition of gain in connection with the transfer of obsolete vessels to the Maritime Administration under chapter 573 of title 46, United States Code, see [section 57307 of title 46](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title46-section57307&num=0&edition=prelim).
(2) For recognition of gain or loss in connection with the construction of new vessels, see chapter 533 of title 46, United States Code.
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 1063
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Married individuals filing joint returns and surviving spouses** There is hereby imposed on the taxable income of—
(1) every married individual (as defined in section 7703) who makes a single return jointly with his spouse under section 6013, and
(2) every surviving spouse (as defined in section 2(a)),
a tax determined in accordance with the following table: If taxable income is:The tax is: Not over $36,90015% of taxable income. Over $36,900 but not over $89,150$5,535, plus 28% of the excess over $36,900. Over $89,150 but not over $140,000$20,165, plus 31% of the excess over $89,150. Over $140,000 but not over $250,000$35,928.50, plus 36% of the excess over $140,000. Over $250,000$75,528.50, plus 39.6% of the excess over $250,000.
**(b) Heads of households** There is hereby imposed on the taxable income of every head of a household (as defined in section 2(b)) a tax determined in accordance with the following table: If taxable income is:The tax is: Not over $29,60015% of taxable income. Over $29,600 but not over $76,400$4,440, plus 28% of the excess over $29,600. Over $76,400 but not over $127,500$17,544, plus 31% of the excess over $76,400. Over $127,500 but not over $250,000$33,385, plus 36% of the excess over $127,500. Over $250,000$77,485, plus 39.6% of the excess over $250,000.
**(c) Unmarried individuals (other than surviving spouses and heads of households)** There is hereby imposed on the taxable income of every individual (other than a surviving spouse as defined in section 2(a) or the head of a household as defined in section 2(b)) who is not a married individual (as defined in section 7703) a tax determined in accordance with the following table: If taxable income is:The tax is: Not over $22,10015% of taxable income. Over $22,100 but not over $53,50
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 1
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Federal law — U.S. Code and appendices · legal_authorities
**(a) General rule** For purposes of this subtitle, if a purchasing corporation makes an election under this section (or is treated under subsection (e) as having made such an election), then, in the case of any qualified stock purchase, the target corporation—
(1) shall be treated as having sold all of its assets at the close of the acquisition date at fair market value in a single transaction, and
(2) shall be treated as a new corporation which purchased all of the assets referred to in paragraph (1) as of the beginning of the day after the acquisition date.
**(b) Basis of assets after deemed purchase**
(1) **In general** — For purposes of subsection (a), the assets of the target corporation shall be treated as purchased for an amount equal to the sum of—
(A) the grossed-up basis of the purchasing corporation’s recently purchased stock, and
(B) the basis of the purchasing corporation’s nonrecently purchased stock.
(2) **Adjustment for liabilities and other relevant items** — The amount described in paragraph (1) shall be adjusted under regulations prescribed by the Secretary for liabilities of the target corporation and other relevant items.
(3) **Election to step-up the basis of certain target stock**
(A) *In general* — Under regulations prescribed by the Secretary, the basis of the purchasing corporation’s nonrecently purchased stock shall be the basis amount determined under subparagraph (B) of this paragraph if the purchasing corporation makes an election to recognize gain as if such stock were sold on the acquisition date for an amount equal to the basis amount determined under subparagraph (B).
(B) *Determination of basis amount* — For purposes of subparagraph (A), the basis amount determined under this subparagraph shall be an amount equal to
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 338
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Federal law — U.S. Code and appendices · legal_authorities
**(a) General rule** A taxpayer shall be entitled to an amortization deduction with respect to any amortizable section 197 intangible. The amount of such deduction shall be determined by amortizing the adjusted basis (for purposes of determining gain) of such intangible ratably over the 15-year period beginning with the month in which such intangible was acquired.
**(b) No other depreciation or amortization deduction allowable** Except as provided in subsection (a), no depreciation or amortization deduction shall be allowable with respect to any amortizable section 197 intangible.
**(c) Amortizable section 197 intangible** For purposes of this section—
(1) **In general** — Except as otherwise provided in this section, the term “amortizable section 197 intangible” means any section 197 intangible—
(A) which is acquired by the taxpayer after the date of the enactment of this section, and
(B) which is held in connection with the conduct of a trade or business or an activity described in section 212.
(2) **Exclusion of self-created intangibles, etc.** — The term “amortizable section 197 intangible” shall not include any section 197 intangible—
(A) which is not described in subparagraph (D), (E), or (F) of subsection (d)(1), and
(B) which is created by the taxpayer.
This paragraph shall not apply if the intangible is created in connection with a transaction (or series of related transactions) involving the acquisition of assets constituting a trade or business or substantial portion thereof.
(3) **Anti-churning rules** — For exclusion of intangibles acquired in certain transactions, see subsection (f)(9).
**(d) Section 197 intangible** For purposes of this section—
(1) **In general** — Except as otherwise provided in this section, the term “section 197 i
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 197
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Federal law — U.S. Code and appendices · legal_authorities
Page 2300
TITLE 26—INTERNAL REVENUE CODE
§ 1060
shall not, for purposes of computing such basis
or inventory cost for purposes of this chapter, be
greater than the amount of such costs taken
into account in computing such customs value.
(b) Customs value; import
For purposes of this section—
(1) Customs value
The term ‘‘customs value’’ means the value
taken into account for purposes of deter-
mining the amount of any customs duties or
any other duties which may be imposed on the
importation of any property.
(2) Import
Except as provided in regulations, the term
‘‘import’’ means the entering, or withdrawal
from warehouse, for consumption.
(Added Pub. L. 99–514, title XII, § 1248(a), Oct. 22,
1986, 100 Stat. 2584.)
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE
Pub. L. 99–514, title XII, § 1248(c), Oct. 22, 1986, 100
Stat. 2584, provided that: ‘‘The amendments made by
this section [enacting this section] shall apply to trans-
actions entered into after March 18, 1986.’’
§ 1060. Special allocation rules for certain asset
acquisitions
(a) General rule
In the case of any applicable asset acquisition,
for purposes of determining both—
(1) the transferee’s basis in such assets, and
(2) the gain or loss of the transferor with re-
spect 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). 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 trans-
feree and transferor unless the Secretary deter-
mine
Source: Supplied 2024 U.S. Code historical extraction · 26 U.S.C. § 1060
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