Final regulations: Transfers to partnerships with related foreign partners (text of regulations)

Transfers to partnerships with related foreign partners

The U.S. Treasury Department and the IRS this afternoon released for publication in the Federal Register final regulations (T.D. 9891) concerning transfers of appreciated property by U.S. persons to partnerships with foreign partners related to the transferor.


Related content

The final regulations [PDF 369 KB] (20 pages as published in the Federal Register) reflect rules previously provided in temporary regulations and override the rules providing for nonrecognition of gain on a contribution of property to a partnership in exchange for an interest in the partnership, unless the partnership adopts the remedial allocation method and certain other requirements are satisfied. 

With these final regulations, regulations proposed in January 2017 are finalized, and corresponding temporary regulations are withdrawn. Read a KPMG report providing initial impressions about the temporary regulations in January 2017: TaxNewsFlash

The purpose of this report is to provide text of the final regulations. The final regulations were published in the Federal Register on January 23, 2020.

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us


Want to do business with KPMG?


loading image Request for proposal