As the World Churns: Avoiding Tax Planning Disaster by Avoiding
Anti-Churning RulesBecause the legacy partners could later own shares of the public company, it is necessary to consider application of the
anti-churning rules.
Unless the
anti-churning rules apply, goodwill is amortized over a 15-year period.
An election could be made to apply the post-1986 ACRS to property that was placed in service between July 31, 1986 and January 1, 1987 (unless such property would have been subject to the
anti-churning rules if it had been placed in service after 1986).
3 (acquired company held not related to acquirer for purpose of
anti-churning rules on the investment tax credit); Rev.
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.
The
anti-churning rules prohibit taxpayers from claiming amortization from intangibles that were not amortizable before the enactment of Sec.
