26 U.S. Code § 1249 - Gain from certain sales or exchanges of patents, etc., to foreign corporations

(a) General rule
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.
(b) Control
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.

Source

(Added Pub. L. 87–834, § 16(a),Oct. 16, 1962, 76 Stat. 1045; amended Pub. L. 89–809, title I, § 104(m)(3),Nov. 13, 1966, 80 Stat. 1563; Pub. L. 94–455, title XIX, § 1901(b)(3)(K),Oct. 4, 1976, 90 Stat. 1793.)
Amendments

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 1231”.
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.
Effective Date

Pub. L. 87–834, § 16(c),Oct. 16, 1962, 76 Stat. 1045, provided 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

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26 USCDescription of ChangeSession YearPublic LawStatutes at Large

 

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