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…