Result Sample Clauses

Result. The term of the Agreement as extended is not further extended, and expires on the fifth anniversary of the Commencement Date.

Result. The term of the Agreement is not extended, and expires on the third anniversary of the Commencement Date. Example 3:

Result. The PFI or Servicer must obtain and maintain fidelity insurance in its own name for at least $3.5 million with a maximum deductible of $300,000, in addition to the coverage maintained by the parent organization.

Result. (A) P must compute its taxable income for year 1 without taking into ac- count the $50x dual consolidated loss, pursu- ant to § 1.1503(d)–4(c)(2). Such amount con- sists of a pro rata portion of the expenses that were taken into account in calculating the year 1 dual consolidated loss. Thus, the items of the dual consolidated loss that are not taken into account by P in computing its taxable income are as follows: $25x of xxx- ary expense ($75x/$150x × $50x); $16.67x of re- search and experimental expense ($50x/$150x × $50x); and $8.33x of interest expense ($25x/ $150x × $50x). The remaining amounts of each of these items, together with the $100x of sales income, are taken into account by P in computing its taxable income for year 1 as follows: $50x of salary expense ($75x ¥ $25x);

Result. (A) Pursuant to § 1.1503(d)– 1(b)(4)(ii), P’s interest in DE1X, and P’s indi- rect ownership of a portion of the Country X operations carried on by PRSZ, are combined and treated as a single separate unit (Coun- try X separate unit). Pursuant to § 1.1503(d)– 5(c)(4)(ii)(A), for purposes of determining P’s items of income, gain, deduction, and loss at- tributable to the Country X separate unit, the items of P are first attributed to each separate unit that composes the Country X separate unit. (B) Pursuant to § 1.1503(d)–5(c)(2)(i), the principles of section 864(c)(2), (c)(4), and (c)(5) (as set forth in § 1.864–4(c) and §§ 1.864–5 through 1.864–7), apply for purposes of deter- mining P’s items of income, gain, deduction (other than interest expense), and loss that are attributable to P’s indirect interest in the Country X operations carried on by PRSZ. For purposes of determining P’s inter- est expense that is attributable to P’s indi- rect interest in the Country X operations carried on by PRSZ, the principles of § 1.882– 5, as modified under § 1.1503(d)–5(c)(2)(ii), shall apply. For purposes of applying these rules, P is treated as a foreign corporation, the Country X operations carried on by PRSZ are treated as a trade or business within the United States, and the assets of P (including its share of the PRSZ assets, other than those of the Country X operations) are treat- ed as assets that are not U.S. assets. In addi- tion, because P carries on its share of the Country X operations through DE1X, a hy- brid entity, § 1.1503(d)–5(c)(4)(i)(A) provides that only the items attributable to P’s inter- est in DE1X, and only the assets, liabilities, and activities of P’s interest in DE1X, are taken into account for purposes of this de- termination. (C) TET is a transparent entity as defined in § 1.1503(d)–1(b)(16) because it is not taxable as an association for Federal tax purposes, is not subject to income tax in a foreign coun- try as a corporation (or otherwise at the en- tity level) either on its worldwide income or on a residence basis, and is not treated as a pass-through entity under the laws of Coun- try X (the applicable foreign country). TET is not a pass-through entity under the laws of Country X because a Country X holder of an interest in TET does not take into account on a current basis the interest holder’s share of items of income, gain, deduction, and loss of TET. For purposes of determining P’s items of income, gain, deduction, and loss that a...

Result. Under § 1.1503(d)–3(c)(3), DRCX’s $200x loss shall be treated as having been made available to offset the $200x of income attributable to P’s Country X separate unit. P’s Country X separate unit is not, under U.S. tax principles, a foreign corporation, and there is no interest in DE1X (which is a hybrid entity) that is not a separate unit. As a result, DRCX’s loss being made available to offset the income attributable to P’s Coun- try X separate unit is not considered a for- eign use of such loss. Therefore, P can make a domestic use election with respect to DRCX’s year 1 dual consolidated loss.

Result. There is no recapture of the year 1 dual consolidated loss attributable to P’s Country X separate unit because it is re- duced to zero under § 1.1503(d)–6(h)(2)(i). How- ever, P is liable for one year of interest charge under § 1.1503(d)–6(h)(1)(ii), even though P’s recapture amount is zero. This is the case because the P consolidated group had the benefit of the dual consolidated loss in year 1, and the income that offset the re- capture income was not recognized until year 2. Pursuant to § 1.1503(d)–6(j)(1)(iii), the domestic use agreement filed by the P con- solidated group with respect to the year 1 dual consolidated loss is terminated and has no further effect.

Result. Under § 1.1503(d)–1(b)(4)(i)(A), P’s and S’s shares of FBX owned indirectly through their interests in PRSX are indi- vidual foreign branch separate units. Pursu- ant to § 1.1503(b)–1(b)(4)(ii), these individual separate units are combined and treated as a single separate unit of the consolidated group of which P is the parent. Unless an ex- ception under § 1.1503(d)–6 applies, any dual consolidated loss attributable to FBX cannot offset income of P or S (other than income attributable to FBX, subject to the applica- tion of § 1.1503(d)–4(c)), including their dis- tributive share of the U.S. source income earned through their interests in PRSX, nor can it offset income of any other domestic affiliates.

Result. In general, under section 381, P would succeed to, and be permitted to use, DRCX’s net operating loss carryover. How- ever, § 1.1503(d)–4(d)(1)(i) prohibits the dual consolidated loss of DRCX from carrying over to P. Therefore, DRCX’s year 1 net operating loss carryover is eliminated. Example 21. Dual consolidated loss limitation applied to a separate unit transferred in a sec- tion 381 transaction. (i) Facts. S owns DE1X which, in turn, owns FBX. S’s interest in DE1X and its indirect interest in FBX are combined and treated as a single separate unit (Country X separate unit) pursuant to § 1.1503(d)–1(b)(4)(ii). In year 1, a dual xxxxxxx- dated loss is attributable to the Country X separate unit, and P does not make a domes- tic use election with respect to such loss. Under § 1.1503(d)–4(b), the year 1 dual xxxxxxx- dated loss attributable to the Country X sep- arate unit may not be used to offset the in- come of P or S (other than income attrib- utable to the Country X separate unit, sub- ject to the application of § 1.1503(d)–4(c)) on the group’s consolidated U.S. income tax re- turn (nor may it be used to offset the income of any other domestic affiliates). At the be- ginning of year 2, S transfers its entire inter- est in DE1X, and thus its entire indirect in- terest in FBX, to FSX in a transaction de- scribed in section 381.

Result. The year 1 $25x net loss attrib- utable to P’s interest in the Country X sepa- rate unit constitutes a dual consolidated loss. In addition, even though DE1X has posi- tive income in year 1 for Country X tax pur- poses, P cannot demonstrate that there is no possibility of foreign use with respect to the Country X separate unit’s dual consolidated loss as provided under § 1.1503(d)–6(c)(1)(i). P cannot make such a demonstration because the depreciation expense, an item composing the year 1 dual consolidated loss, is deduct- ible (in a later year) for Country X tax pur- poses and, therefore, may be available to off- set or reduce income for Country X purposes that would constitute a foreign use. For ex- ample, if DE1X elected to be classified as a corporation pursuant to § 301.7701–3(c) of this chapter effective as of the end of year 1, and the deferred depreciation expense were avail- able for Country X tax purposes to offset year 2 income of DE1X, an entity treated as a foreign corporation in year 2 for U.S. tax purposes, there would be a foreign use.