What is Export Property? A Comprehensive Legal Overview

Q: How can I determine if my goods qualify as export property?

Review the criteria set forth in the Internal Revenue Code and consult a tax professional for guidance.

Q: Are there tax benefits for exporting goods?

Yes, businesses may qualify for tax incentives if their goods meet the definition of export property.

Definition & Meaning

Export property refers to specific goods that are manufactured, produced, grown, or extracted in the United States and are intended for sale, lease, or rental outside the country. To qualify as export property, these goods must meet certain criteria, including:

They must be created by someone other than a Domestic International Sales Corporation (DISC).
They should be primarily held for sale or lease by a DISC for use outside the United States.
No more than fifty percent of their fair market value can be derived from imported articles.

Table of content

Legal Use & context

The term "export property" is primarily used in the context of tax law, particularly under the Internal Revenue Code. It is relevant for businesses engaged in international trade and can affect tax incentives available to them. Understanding this term is crucial for companies that want to benefit from tax provisions related to exports. Users can manage related forms and procedures through platforms like US Legal Forms, which offer templates drafted by legal professionals.

Key legal elements

Real-world examples

Here are a couple of examples of abatement:

Example 1: A company manufactures machinery in the United States and sells it to a foreign buyer. This machinery qualifies as export property because it is produced in the U.S. and intended for use outside the country.

Example 2: A farm grows organic produce in the U.S. and sells it to a distributor who exports it abroad. This produce meets the criteria for export property as it is grown in the U.S. and primarily sold for export. (hypothetical example)

Relevant laws & statutes

Key legislation related to export property includes:

26 USCS § 993 - This section of the Internal Revenue Code outlines the definition and criteria for export property.
Tariff Act of 1930 - This act provides guidelines for determining the appraised value of imported articles.

Comparison with related terms

Term	Definition	Key Differences
Export Property	Goods manufactured or produced in the U.S. for sale outside the country.	Must meet specific criteria regarding production and value.
Domestic International Sales Corporation (DISC)	A corporation that qualifies for tax benefits on export sales.	DISC is a type of entity; export property is a classification of goods.

Common misunderstandings

What to do if this term applies to you

If you believe your business involves export property, consider the following steps:

Review the criteria outlined in the Internal Revenue Code to ensure your goods qualify.
Consult with a tax professional to understand the implications for your business.
Explore US Legal Forms for templates that can assist in managing your documentation and compliance needs.

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Quick facts

Attribute	Details
Jurisdiction	Federal law under the Internal Revenue Code
Typical Fees	Varies based on business operations and tax filings
Possible Penalties	Tax penalties for misclassification or non-compliance

Key takeaways

Frequently asked questions

What is export property?

Export property refers to goods manufactured in the U.S. that are intended for sale or lease outside the country.