Section 1071 Q&As post fifteen

If the affiliate GAR and the non-affiliate GAR combined exceeds $5 million, would that loan no longer be a covered transaction? Would it be permissible to consider both when considering applicability but only report one?

No, you never count the GAR of a business that’s not affiliated with the borrower. If the business is affiliated with the borrower, you have the election to include the affiliate revenue or not.


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