Notice 2014-44 - Foreign tax credits and section 901(m) covered asset acquisitions  

July 21:  The IRS today released an advance copy of Notice 2014-44, which provides guidance relating to certain dispositions of assets following a section 901(m) covered asset acquisition (CAA).

Specifically, Notice 2014-44 provides a definition of a disposition to which section 901(m)(3)(B)(ii) applies, and provides successor rules under which the basis difference in relevant foreign assets carries over to the new owner.

Notice 2014-44 [PDF 49 KB] states that Treasury and the IRS will issue future regulations reflecting this guidance.

Effective date

In general, the future regulations will apply to dispositions occurring on or after July 21, 2014.

Parts of the regulations will apply to section 743(b) CAAs occurring on or after July 21, 2014, but taxpayers may consistently apply the guidance in those paragraphs to all section 743(b) CAAs occurring on or after January 1, 2011.

Other parts of the regulations will apply to any unallocated basis difference with respect to an RFA as of July 21, 2014, and any basis difference with respect to an RFA that arises in a CAA occurring on or after July 21, 2014.

Read an initial description of Notice 2014-44 in a July 2014 report [PDF 211 KB] prepared by KPGM LLP.

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