abc transaction

ABC transaction. Oil & gas. A sale of a working interest from an owner (A) to an operator (B) in return for a cash payment and the right to another (usu. larger) payment when the well produces, followed by A’s sale of the right to the production payment to a corporation (C), which pays A in cash borrowed from a lender on C’s pledge of the production payment. • Thus A receives cash taxed at capital-gains rates, and B pays part of the purchase price with nontaxable production income. The tax advantages of this transaction were eliminated by the Tax Reform Act of 1969.

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词条贡献者

专业法律翻译郭敏，毕业于欧洲顶尖的高级翻译学院，专注翻译各类与复杂保险交易有关的法律文件。