Common use of Result Clause in Contracts

Result. The $100x loss attributable to P’s interest in DE1X is available to, and in fact does, offset FSX’s income under the laws of Country X. In addition, under U.S. tax principles, such income is considered to be an item of FSX, a foreign corporation. As a result, under § 1.1503(d)–3(a), there has been a foreign use of the year 1 dual consolidated loss attributable to P’s interest in DE1X. Therefore, P cannot make a domestic use election with respect to the loss as provided under § 1.1503(d)–6(d)(2), and such loss will be subject to the domestic use limitation rule of § 1.1503(d)–4(b). The result would be the same even if FSX, under Country X tax law, had no income against which the dual con- solidated loss of DE1X could be offset (unless FSX’s ability to use the loss under Country X tax law requires an election, and no such election is made).