17 NCAC 07B .3009          TRANSFER OF REPOSSESSED ITEMS TO NEW BUSINESS

A repossessed item that is in the inventory of a business and would be exempt under G.S. 105-164.13(16) if sold by the business becomes taxable when the business dissolves and transfers its inventory to a successor business entity.  This applies to all business reformulations except a merger of two or more business entities in which the inventory is transferred to the surviving business entity.

 

History Note:        Authority G.S. 105‑164.4; 105‑164.6; 105‑262;

Eff. February 1, 1976;

Amended Eff. July 1, 2000; October 1, 1993; October 1, 1991; November 1, 1982.