The Internal Revenue Service doesn't set a minimum or maximum transfer price. What it uses, instead, is the "arm's-length" rule: If the price is one that two unconnected businesses would agree to, it's acceptable. The IRS offers businesses multiple ways to measure this. A business buying from its subsidiary can show, for example, that the price was comparable to an arm's-length transaction. If it resells the items, the standard for comparison is the resale price. A company may use whichever method gets it the most desirable transfer price.