Property Transferred in Connection With Performance of Services

ID:
Office:
UILC:
CCA_2011021513120015
---
83.00-00
Number: 201125017
Release Date: 6/24/2011
From: ---
Sent: Tuesday, February 15, 2011 1:12:02 PM
To: ---
Cc:
Subject: RE: 2003-98 and the TAM
--- thanks for looking at the ruling. Both involve situations where property was transferred after a merger that related to services performed before the merger. The default rule is that the service recipient (Target) gets the deduction. However, in the TAM the transfer of property (there, a payment of cash treated as a property transfer under 1.83-7) occured after the merger; in situation 4 of the Rev.
Rul, the transfer of property (there, an exercise of shares of the Acquiror), occured after the merger. In both cases, if the transaction was a stock transaction, the Target gets the deduction. But since there was a merger in both cases, the Acquiror succeeds to the Target's deduction. So on the key facts, I think they are the same.
This is just my tentative view.