§1059A Limitation on Taxpayer’s Basis or Inventory Cost in Property Imported From Related Persons

Summary

When related parties bring property into the United States (as “related persons” is defined in section 482), any costs the buyer includes in the property’s tax basis or inventory cost that were also used to set the customs value must not be higher, for purposes of computing that basis or inventory cost for purposes of this chapter, than the amount used to compute the customs value. Customs value — the value used to figure customs duties or other import duties. Import — generally means bringing goods in, or taking them out of a warehouse for use, unless regulations say otherwise.