The IRS ruled that race car parts owned by a taxpayer, through disregarded entity that reassembled racing cars during a race season, were an appropriate asset for disposition purposes under Treas.Reg. Sec. 1.168(i)-8(c)(4). The disposition occurred when the taxpayer disassembled each racing car entry into its various parts and permanently withdrew those parts.
Posted by Lewis J. Saret, Co-General Editor, Wealth Strategies Journal.