IRS Notice: Exclusion of Certain Property Sales From Deduction Eligible Income Calculations (IRC §250)

The IRS has published a notice announcing its intent to issue proposed regulations addressing the scope of I.R.C. §250(b)(3)(A)(i)(VII), which excludes income and gain from sales or dispositions of certain property from deduction eligible income (DEI) calculations. The exclusion applies to intangible property as defined in I.R.C. §367(d)(4) and other property subject to depreciation, amortization, or depletion by the seller. The notice provides definitions, examples, and anti-abuse rules for determining when property sales are excluded from DEI, which affects the foreign-derived deduction eligible income (FDDEI) deduction available to domestic corporations. The rules apply to sales or dispositions occurring after June ...