26 C.F.R. § 1.1060-1T Special allocation rules for certain asset acquisitions (temporary).
Title 26 - Internal Revenue
(a) through (c)(2) [Reserved] For further guidance, see §1.1060–1(a) through (c)(2). (c)(3) Certain costs. The seller and purchaser each adjusts the amount allocated to an individual asset to take into account the specific identifiable costs incurred in transferring that asset in connection with the applicable asset acquisition (e.g., real estate transfer costs or security interest perfection costs). Costs so allocated increase, or decrease, as appropriate, the total consideration that is allocated under the residual method. No adjustment is made to the amount allocated to an individual asset for general costs associated with the applicable asset acquisition as a whole or with groups of assets included therein (e.g., non-specific appraisal fees or accounting fees). These latter amounts are taken into account only indirectly through their effect on the total consideration to be allocated. If an election described in §1.338–6T(c)(5) is made with respect to an applicable asset acquisition, any allocation of costs pursuant to this paragraph (c)(3) shall be made as if such election had not been made. The preceding sentence applies to applicable asset acquisitions occurring on or after September 15, 2004. (c)(4) through (e)(1)(ii)(B) [Reserved] For further guidance, see §1.1060–1(c)(4) through (e)(1)(ii)(B). (e)(1)(ii)(C) Election described in §1.338–6T(c)(5)—(1) Availability. The election described in §1.338–6T(c)(5) is available in respect of an applicable asset acquisition provided that the requirements of that section are satisfied. Such election may be made by the seller, regardless of whether the purchaser also makes the election, and may be made by the purchaser, regardless of whether the seller also makes the election. (2) Time and manner of making election. The election described in §1.338–6T(c)(5) is made by taking a position on a timely filed original tax return for the taxable year of the applicable asset acquisition that is consistent with having made the election. (3) Irrevocability of election. The election described in §1.338–6T(c)(5) is irrevocable. (4) Effective date. This paragraph (e)(1)(ii)(C) applies to applicable asset acquisitions occurring on or after September 15, 2004. (e)(2) [Reserved] For further guidance, see §1.1060–1(e)(2). [T.D. 9158, 69 FR 55742, Sept. 16, 2004]
Title 26: Internal Revenue
PART 1—INCOME TAXES
Special Rules
§ 1.1060-1T Special allocation rules for certain asset acquisitions (temporary).
