International Tax

Dual Consolidated Loses (Portfolio 6650)

  • This Portfolio provides a detailed description of the limitations imposed for federal income tax purposes on the use of a single economic loss twice.

Description

The Bloomberg Tax Portfolio 6650 T.M., Dual Consolidated Losses, provides a detailed description of the limitations imposed for federal income tax purposes on the use of a single economic loss twice: the first time against income of the domestic affiliates of the taxpayer, and the second time under foreign law against other income of other affiliates (otherwise called “double-dipping”).

While the focus of this Portfolio is on the current Treasury regulations that are generally applicable to dual consolidated losses incurred in taxable years beginning on or after April 18, 2007, where relevant, the Portfolio also describes prior regulations that are still in effect with respect to losses incurred in prior years. The structure of the Portfolio generally follows the steps of the analysis required when faced with a situation involving a dual consolidated loss. The Portfolio also includes practical advice and examples demonstrating the application of the rules in specific situations. This Portfolio may be cited as Altman and Solomon, 6650 T.M., Dual Consolidated Losses.

Table of Contents

I. Introduction
II. Definitions and Scope of the DCL Rules
III. Transactions Outside the Scope of the DCL Regulations — The Limits of the DCL Rules
IV. DCL Calculation and Attribution Rules
V. Foreign Use
VI. Domestic Use Limitations
VII. Domestic Use Election and Agreement
VIII. Other Rules

daniel-altman
Daniel Altman
Partner
Sidley Austin LLP
Andrew-Solomon
Andrew Solomon
Sullivan & Cromwell LLP
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