
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 26USC1059A]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                        Subtitle A--Income Taxes
 
                  CHAPTER 1--NORMAL TAXES AND SURTAXES
 
          Subchapter O--Gain or Loss on Disposition of Property
 
                         PART IV--SPECIAL RULES
 
Sec. 1059A. Limitation on taxpayer's basis or inventory cost in 
        property imported from related persons
        

(a) In general

    If any property is imported into the United States in a transaction 
(directly or indirectly) between related persons (within the meaning of 
section 482), the amount of any costs--
        (1) which are taken into account in computing the basis or 
    inventory cost of such property by the purchaser, and
        (2) which are also taken into account in computing the customs 
    value of such property,

shall not, for purposes of computing such basis or inventory cost for 
purposes of this chapter, be greater than the amount of such costs taken 
into account in computing such customs value.

(b) Customs value; import

    For purposes of this section--

                          (1) Customs value

        The term ``customs value'' means the value taken into account 
    for purposes of determining the amount of any customs duties or any 
    other duties which may be imposed on the importation of any 
    property.

                             (2) Import

        Except as provided in regulations, the term ``import'' means the 
    entering, or withdrawal from warehouse, for consumption.

(Added Pub. L. 99-514, title XII, Sec. 1248(a), Oct. 22, 1986, 100 Stat. 
2584.)


                             Effective Date

    Section 1248(c) of Pub. L. 99-514 provided that: ``The amendments 
made by this section [enacting this section] shall apply to transactions 
entered into after March 18, 1986.''
