Definition of Attribution rules:
Attribution rules came to be via three main sections of the Internal Revenue Code. Internal Revenue Code Section 267(c) determines individuals who are prohibited from certain transactions involving plan assets.
Rules used in Canada meant for use in preventing investors from the avoidance of taxes by initiating the transfer of assets to family members who are in a lower tax bracket.
Attribution rules refer to a set of Internal Revenue Services (IRS) guidelines that have been established to thwart the creation of business ownership structures designed to skirt certain tax laws. The guidelines call for attribution of ownership from one person or entity to other people or entities in certain scenarios, which is particularly important for family-held businesses.
How to use Attribution rules in a sentence?
- Attribution rules mark out the legal principal owners of a firm, and are in place to prevent tax evasion or fraud.
- These rules establish that stock owned, directly or indirectly, by or for a partnership shall be considered as owned by any partner having an interest of 5 percent or more in either the capital or profits.
- This is important especially for family businesses where equity ownership may be obscure, and transactions involving business and personal funds can become intermingled.
Meaning of Attribution rules & Attribution rules Definition