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

法律翻译Max，毕业于一所培养最顶级翻译人才的语言学院，擅长翻译有关电信和互联网领域的法律文件。