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2022 U.S. Code
Title 26 - Internal Revenue Code
Subtitle A - Income Taxes
Chapter 1 - Normal Taxes and Surtaxes
Subchapter O - Gain or Loss on Disposition of Property
Part IV - Special Rules
Sec. 1059A - Limitation on taxpayer's basis or inventory cost in property imported from related persons

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Citation 26 U.S.C. § 1059A (2022)
Section Name §1059A. Limitation on taxpayer's basis or inventory cost in property imported from related persons
Section Text (a) In general

If any property is imported into the United States in a transaction (directly or indirectly) between related persons (within the meaning of section 482), the amount of any costs—

(1) which are taken into account in computing the basis or inventory cost of such property by the purchaser, and

(2) which are also taken into account in computing the customs value of such property,


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 determining 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.
Source Credit

(Added Pub. L. 99–514, title XII, §1248(a), Oct. 22, 1986, 100 Stat. 2584.)
Editorial Notes 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 transactions entered into after March 18, 1986."
Publication Title United States Code, 2018 Edition, Supplement 4, Title 26 - INTERNAL REVENUE CODE
Category Bills and Statutes
Collection United States Code
SuDoc Class Number Y 1.2/5:
Contained Within Title 26 - INTERNAL REVENUE CODE
Subtitle A - Income Taxes
CHAPTER 1 - NORMAL TAXES AND SURTAXES
Subchapter O - Gain or Loss on Disposition of Property
PART IV - SPECIAL RULES
Sec. 1059A - Limitation on taxpayer's basis or inventory cost in property imported from related persons
Contains section 1059A
Date 2022
Laws In Effect As Of Date January 5, 2023
Positive Law No
Disposition standard
Statutes at Large References 100 Stat. 2584
Public Law References Public Law 99-514
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