3 (acquired company held not related to acquirer for purpose of
anti-churning rules on the investment tax credit); Rev.
Taxpayers may elect to apply this provision to assets acquired after July 25, 1991.(7)
Anti-churning rules prevent the taxpayer from converting existing intangible assets for which no deduction would be allowed in the absence of Section 197 into assets whose amortization would be deductible.
197 intangible acquisition was from a decedent, the
anti-churning rules do not apply, and IRC Sec.
The IRS did not address whether the
anti-churning rules under Sec.
197
anti-churning rules do not apply, they would be eligible for 15-year amortization.
197
anti-churning rules do not apply and the partnership can make reverse Sec.
197
anti-churning rules to a partnership basis step-up under Sec.
Anti-churning rules. The
anti-churning rules prohibit taxpayers from claiming amortization from intangibles that were not amortizable before the enactment of Sec.
As long as the buyer is not related to the seller, there should be no problems with the
anti-churning rules, since Sec.
Goodwill may be subject to
anti-churning rules, but other intangibles will not.
197(f)(9) provides
anti-churning rules to prevent such situations.
* As the World Churns: Avoiding Tax Planning Disaster by Avoiding
Anti-Churning Rules
