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.

Photo by J. Schiemann on Unsplash

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.