Proposed regulations issued regarding limitations on loss importation

The US Treasury Department and the Internal Revenue Service (IRS) have issued proposed regulations (REG–161948–05) regarding limitations on the importation of net built-in losses in certain non-recognition transfers of loss property under sections 334(b)(1)(B) and 362(e)(1) of the US Internal Revenue Code (IRC) (the "anti-loss importation provisions").

These provisions are intended to prevent situations in which property with a loss that accrued while the property was held outside the Un…