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Can't get anyone in LA to answer the phone. Are asset transfers taxable in LA?

Full Question: Can't get anyone in Louisiana to answer the phone. Have a general question about asset transfers. Child Company A in Colorado transfers asset to Child Company B in Louisiana. Is this considered a taxable transaction in Louisiana? No consideration is transferred in the exchange and it's just a journal entry transfer.

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Answer:

Diane Yetter photoIf the assets are located in Louisiana at the time of the transfer then, Louisiana law is the appropriate jurisdiction to follow rather than Colorado. This answer assumes this fact. In Louisiana, an intercompany transfer is not considered a sale and is therefore exempt from taxation if the companies are owned by the same individual and there is no markup for profit on the intercompany transfer. If these conditions are met in this case, then the transfer is not considered a taxable transaction in Louisiana.

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