Common use of Result Clause in Contracts

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.