Tax Law Updates | New Proposed Regulations
February 17, 2009
IRS Seeks to Amend Regulation on Definition of an Interest in Real Property
Infrastructure Improvements under Section 897
REG–130342–08, Announcement 2008–115, 12/2/2008
The Internal revenue Service (“IRS”) has issued a document describing issues that it and the Treasury Department are considering addressing, in a notice of proposed rulemaking, regarding the definition of an interest in real property within the meaning of section 897(c) of the Internal Revenue Code (“IRC”).
The notice of proposed rulemaking would address certain rights granted by a governmental unit that are related to the lease, ownership, or use of toll roads, toll bridges, and certain other physical infrastructure. The proposed regulations would amend the § 1.897–1 regulations. By way of background, Section 897(a)(1) of the IRC treats the gain…
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