When a company is leasing transponder capacity only for the right to use Federal Communications Commission-designated frequencies, such a right is intangible property
excluded from the property factor.
Most significantly, the new rules replace current regulations that apply to intangible property
and substantially modify rules relating to sales of tangible property.
Loomis golf shaft designs, machinery, tooling and other intangible property
used in the manufacture of graphite golf shafts, shaft inventory, and continued use of the G.
iii) Real property that does not give rise to rental of similar income, to the extent used or held for use in the controlled foreign corporation's trade or business; (iv) Intangible property
(as defined in section 936(h)(3)(B)), goodwill of going concern value, to the extent used or held for use in the controlled foreign corporation's trade of business.
Finally, taxpayers must capitalize amounts paid to another party to defend or perfect title to intangible property
if the other party challenges the taxpayer's title to the intangible property
A transaction means the physical receipt of cash or foreign currency from a purchaser of goods, services, or personal, real or intangible property
Excluding real property such as buildings and intangible property
such as contracts, stocks and bonds, personal property includes almost all other tangible, movable objects, including cars, trucsk, furniture, clothes, computers, books, magazines, food, drinks, supplies and machinery and equipment.
In addition to the receipts-factor sourcing issue, the Disney Enterprises ruling also addressed the lack of "factor representation" for intangible property
that generated substantial royalties for the taxpayer in the form of intellectual property licensed to third parties.
Hubbard suggested that a taxpayer is required to know the amount of the charitable contributions of intangible property
for tax deduction purposes, as well as the amount of the Schedule M adjustment.
As expected, the additional overhead and amortization of goodwill and other intangible property
associated with this strategic acquisition, and the increased investment in international sales and marketing, led to higher operating expenses of $4.
Tangible personal property is property other than real estate or intangible property
(such as stock or debt securities) and would include contributions of art objects, jewelry, antiques, books, automobiles, yachts, etc.
Permitted TPMs--largely analogous to those for tangible and intangible property
transfers but carefully tailored to services--are: (i) comparable uncontrolled services price method; (ii) gross services margin method; (iii) cost of services plus method; (iv) comparable profits method (CPM); (v) simplified cost-based method; and (vi) profit split method.