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BTLG Table of Contents > Sales and Use Tax Annotations > L > 330.0000 Leases Of Tangible Personal Property—In General > Annotation 330.5268

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330.0000 Leases of Tangible Personal Property—In General—Regulation 1660

Annotation 330.5268

(e) Sales and Leaseback Transactions

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330.5268 Tax Benefit Transaction. A taxpayer claims that a client-investor contract qualifies as a "tax benefit transaction" under Regulation 1660(a)(3)(c). However, subdivision (a)(3)(c) of the regulation applies to sale and leaseback transactions entered into when former IRS section 168(f)(8), as enacted by the Economic Recovery Tax Act of 1981, was in effect. That section has been repealed and, therefore, cannot be applied to a client-investor contract, which was not in existence during the lifetime of former section 168(f)(8). Therefore, the contract cannot qualify as a tax benefit transaction as defined by Regulation 1660(a)(3)(c). 4/30/98. (M99–1).