Question for tax lawyers: can you sell something to yourself? Or, is a true sale, by definition, a transaction between two distinct legal entities?
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Isn’t this the basis of all transfer pricing?
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different legal entities.
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Indeed. Unless I misunderstood the question
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my question was about the definition of "sell". Does it require 2 distinct legal entities or can both sides be the same legal entity?
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I believe two distinct entities otherwise it’s not a sale. Can be two subsidiaries of the same parent entity
Cc (lawyers) for confirmation
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Generally speaking you can’t sell what you don’t have and you can’t set up an artificial scheme to make it seem like you’ve sold something when you haven’t. See eg Icebreaker LLP structures (and subsequent enforcement). Ymmv/speak to tax counsel
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Can be *credibly* done with an independent valuation from a transfer pricing firm (happy to connect you to a reputable firm here, DM).
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I can’t picture a legal entity giving itself something it already owns meets the definition of a sale or a transfer. And if it did I’m not sure it would accomplish your tax planning goals. Tax regulators tend to plan against clever hijinks.