Gain from the sale or exchange after December 31, 1962, of a patent, an invention, model, or design (whether or not patented), a copyright, a secret formula or process, or any other similar property right to any foreign corporation by any United States person (as defined in section
7701(a)(30)) which controls such foreign corporation shall, if such gain would (but for the provisions of this subsection) be gain from the sale or exchange of a capital asset or of property described in section
1231, be considered as ordinary income.
For purposes of subsection (a), control means, with respect to any foreign corporation, the ownership, directly or indirectly, of stock possessing more than 50 percent of the total combined voting power of all classes of stock entitled to vote. For purposes of this subsection, the rules for determining ownership of stock prescribed by section
958 shall apply.
1976—Subsec. (a). Pub. L. 94–455substituted “ordinary income” for “gain from the sale or exchange of property which is neither a capital asset nor property described in section
1966—Subsec. (a). Pub. L. 89–809substituted “Gain” for “Except as provided in subsection (c), gain”.
Effective Date of 1976 Amendment
Amendment by Pub. L. 94–455effective for taxable years beginning after Dec. 31, 1976, see section 1901(d) ofPub. L. 94–455, set out as a note under section
2 of this title.
Effective Date of 1966 Amendment
Amendment by Pub. L. 89–809applicable with respect to taxable years beginning after Dec. 31, 1966, see section 104(n) ofPub. L. 89–809, set out as a note under section
11 of this title.
Section 16(c) ofPub. L. 87–834provided that: “The amendments made by this section [enacting this section] shall apply to taxable years beginning after December 31, 1962.”
The table below lists the classification updates, since Jan. 3, 2012, for this section. Updates to a broader range of sections may be found at the update page for containing chapter, title, etc.
The most recent Classification Table update that we have noticed was Tuesday, August 13, 2013
An empty table indicates that we see no relevant changes listed in the classification tables. If you suspect that our system may be missing something, please double-check with the Office of the Law Revision Counsel.
Description of Change
Statutes at Large
LII has no control over and does not endorse any external Internet site that contains links to or references LII.