close
Share with your friends

Section 864(c)(8) and tax treatment on sale of U.S. trade or business partnership interests on a look-through basis

Final and temporary regulations

The IRS this afternoon posted on its website a version of final and temporary regulations (T.D. 9919) as rules for determining the amount of gain or loss treated as effectively connected with the conduct of a trade or business within the United States—“effectively connected gain” or “effectively connected loss”—under section 864(c)(8).

1000

Related content

The final and temporary regulations [PDF 284 KB] (51 pages) include rules to coordinate section 864(c)(8) with other relevant sections of the Code. According to the preamble, these final and temporary regulations retain the basic approach and structure of proposed regulations (December 2018) with certain revisions.

Section 864(c)(8) was added to the Code by the 2017 U.S. tax law (Pub. L. No. 115-97)—the law that is often referred to as the “Tax Cuts and Jobs Act” (TCJA). Today’s release finalizes the regulations that were proposed in December 2018; those proposed regulations referred to the Grecian Magnesite Mining case.

Today’s version of the final and temporary regulations includes the following statement:

This document is in the process of being submitted to the Office of the Federal Register (OFR) for publication and will be pending placement on public display at the OFR and publication in the Federal Register. The version of the final regulations released today may vary slightly from the published document if minor editorial changes are made during the OFR review process. The document published in the Federal Register will be the official document.

The purpose of this report is to provide text of the regulations. 

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