International Tax Institute, Inc. August 13, 1976

DISC Provisions in the Tax Reform Act of 1976
Robert Feinschreiber, Attorney
Robert ExportDISC Management Company
New York, New York

A. Scope of the DISC Provisions -Primarily Bill Sec. 1161

1. Incremental Rule
2. Exclusion of Certain Military Goods
3. Reorganization Rules
4. Increase in Deferral Period
5. Revision of Deficiency Distribution Rules
6. Denial of Benefits for Bribe and Boycott Income
7. Agricultural Products

B. The Incremental Rules

1. What the rule does: DISC benefits are available only to the extent exports are increased over a base period amount.
2. How the rule works: DISC income attributable to the nonincremental portion of gross receipts . is a new type of deemed distribution.
3. Illustrating the rule:

Taxable income $100
Base period income - 30.
Incremental income . $ 70

Base period distribution $ 30'.
Regular distribution 35
Total distribution . $ 65

4. New terms

a. Export gross receipts §995(e)(4)
b. b. Base period f'995(e) (5)
c. Adjusted base period export gross receipts !'995(e)(3)
d. Taxable income attributable to base period export gross receipts 995(e) (I)
e. Adjusted taxable income. \.."995 (e,) (2)

5. The formula: 995(e)(1)
TIATBPEGR = ATI x ABPEGR .
EGR
This is the deemed distribution in new ~995(b)(I)(D)



For a copy of the entire article please contact us:
ExportDISC Management Company
pursuant to Section 993(a)(1)(H) and Section 993(b)(2)
Robert Feinschreiber & Margaret Kent

1121 Crandon Blvd. F301
Key Biscayne, FL 33149
Primary Phone: 305.361.5800
or 305.505.9200
Fax: 305.365.2276
multijur@aol.com
www.exportDISC.com
www.transferpricingconsortium.com
disc provisions, incremental rule, disc, robert feinschreiber, tax, margaret kent, export