Excluded export property refers to specific types of property that are not eligible for certain tax benefits under the Internal Revenue Code. This includes property that is leased or rented by a Domestic International Sales Corporation (DISC) for use by members of a controlled group, as well as various intellectual properties, natural resources, and certain unprocessed timber.
This term is primarily used in tax law, particularly concerning international trade and export activities. It is relevant for businesses operating as DISCs, which are designed to encourage exportation of U.S. goods. Understanding excluded export property is crucial for businesses to ensure compliance with tax regulations and to maximize their eligible tax benefits.
Here are a couple of examples of abatement:
For instance, a company that leases machinery to a DISC for manufacturing goods intended for export may find that this machinery qualifies as excluded export property. Similarly, a company holding a patent for a product that is exported may need to consider how this patent is treated under tax law.
The primary statute governing excluded export property is found in 26 USCS § 993, which outlines the treatment of qualifying corporations under the Internal Revenue Code. Additional regulations may be found in the Export Administration Act of 1979.
| Term | Definition | Key Differences |
|---|---|---|
| Export Property | Property eligible for tax benefits when exported. | Excluded export property is specifically not eligible for certain benefits. |
| Domestic International Sales Corporation (DISC) | A corporation designed to encourage U.S. exports. | DISC status is necessary for determining excluded export property. |
If you are involved in exporting goods and believe you may have excluded export property, it is advisable to consult with a tax professional. They can help clarify your obligations and ensure you are taking advantage of available tax benefits. Additionally, you can explore US Legal Forms for templates that may assist you in managing your compliance effectively.
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Excluded export property refers to specific types of property that do not qualify for certain tax benefits under U.S. tax law.