Extract to table

Does IRC § 367(a)(1) apply to the contribution of property by a foreign partnership to a domestic partnership, such that the contributing foreign partnership (or its partners) must recognize gain on the transfer? Issue 2

The Statutory Language IRC § 367(a)(1) provides, in relevant part: "If, in connection with any exchange described in section 332, 351, 354, 355, 356, or 361, a United States person transfers property to a foreign corporation, such foreign corporation shall not, for purposes of determining the extent to which gain shall be recognized on such transfer, be considered to be a corporation

The Three Textual Prerequisites Section 367(a)(1) contains three textual elements, each of which must be satisfied for the provision to apply: First, the transfer must occur "in connection with any exchange described in section 332, 351, 354, 355, 356, or 361

Second, the transferor must be a "United States person

Third, the transferee must be a "foreign corporation

The Two Textual Prerequisites Section 367(b)(1) contains two key textual elements: First, the exchange must be "described in section 332, 351, 354, 355, 356, or 361