ForCo, a foreign corporation, purchases widgets from USCo, Inc., its U.S.parent corporation.The widgets are sold by ForCo to another unrelated foreign corporation in the same country as ForCo.The income from sale of the widgets by ForCo is not Subpart F foreign base company sales income.

Question

Quizplus · Accepted Answer

The income from sale of widgets by ForCo to an unrelated foreign corporation in the same country as ForCo does not meet the criteria for Subpart F foreign base company sales income, as it does not involve sales to a U.S. person or a related party.

ForCo, a Foreign Corporation, Purchases Widgets from USCo, Inc