# Prop. Treas. Reg. § 1.1502-13: Intercompany transactions.

Proposed regulation, not in force. REG-100400-14, 80 FR 12097, published 2015-03-06 <https://www.federalregister.gov/documents/2015/03/06/2015-05123/guidance-regarding-reporting-income-and-deductions-of-a-corporation-that-becomes-or-ceases-to-be-a>. Interprets 26 U.S.C. § 1502.

Par. 4. Section 1.1502-13 is amended by adding Example 3(e) to paragraph (c)(7)(ii) to read as follows:

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(c) * * *

(7) * * *

(ii) * * *

Example 3.

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(e) Liability in excess of basis. The facts are the same as in paragraph (a) of this Example 3, except that S and B are not members of the same consolidated group immediately before S's transfer of the land to B, and the land is encumbered with an $80 liability. Immediately after the transfer, S and B are members of the same consolidated group. Thus, the transfer is an intercompany transaction to which section 357(c) does not apply pursuant to § 1.1502-80(d).

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