Supreme Court Punts on Moore Decision
The Supreme Court in a 7-2 decision indicated that the Code Sec. 965 transition tax was constitutional, but punted on whether tax on unrealized gains was constitutional or not.
The Supreme Court in a 7-2 decision indicated that the Code Sec. 965 transition tax on foreign income that had not been repatriated to the US is taxable.
Petitioners Charles and Kathleen Moore owned a 13% state in KisanKraft Tools Private Limited based in India. The 2017 TCJA law enacted a 15.5% tax on cash and 8% tax on other assets that had not yet been repatriated to the US.
