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.

See PLR 201710006 by clicking here.

Posted by Lewis J. Saret, Co-General Editor, Wealth Strategies Journal.