ABC transaction

(thing) by coby (3.9 y) Sun Apr 16 2000 at 3:45:49
In mining and oil drilling operations, a transfer by which A, the owner, conveys the working interest to B, the operator and developer for cash consideration, reserving a production payment usually larger than the cash consideration paid by B. Later, A sells the reserved production payment to C for cash. The tax advantages of this type of transaction were eliminated by the Tax Reform Act of 1969.
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