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13 Charts of Code §958 Regulation Examples


We have created charts of the 13 of the examples included in Treas. Reg. §§1.958-1 and -2.

Treas. Reg. §1.958-1 contains 5 examples demonstrating attribution through direct and indirect ownership.  These regulations provide a limited form of attribution primarily for use in determining the amount taxable to a U.S. shareholder under Code §951(a) (Subpart F Income).

Treas. Reg. §1.958-2 contains 8 examples demonstrating attribution through constructive ownership.  These regulations provide that the attribution rules of Code §318(a), as modified by Code §958(b), apply to the extent that the effect is:

  1. To treat a U.S. person as a U.S. shareholder within the meaning of Code §951(b), 
  2. To treat a person as a related person within the meaning of Code §954(d)(3), 
  3. To treat the stock of a domestic corporation as owned by a U.S. shareholder of a CFC under Code §956(b)(2), or 
  4. To treat a foreign corporation as a CFC under Code §957.

The regulation examples charted include and can be found here:

  1. 1.958-1(b), Example (Indirect Ownership Thru Foreign Corporations; Attribution Stops with First U.S. Person Going Up the Chain)
  2. 1.958-1(d), Example 1 (Indirect Ownership Thru Foreign Corporations)
  3. 1.958-1(d), Example 2 (Indirect Ownership Thru Foreign Partnerships & Foreign Corporations)
  4. 1.958-1(d), Example 3 (Indirect Ownership Thru Foreign Trust)
  5. 1.958-1(d), Example 4 (Indirect Ownership Thru Foreign Estate)
  6. 1.958-2(f), Example 1 (9% Direct Owner Treated As U.S. Shareholder Thru Constructive Ownership)
  7. 1.958-2(f), Example 2 (More Than 50% Ownership of a Corp Thru an Entity is Treated as 100% Constructive Ownership)
  8. 1.958-2(g), Example 1 (Use Higher of 1.958-1 Attribution or 1.958-2 Attribution)
  9. 1.958-2(g), Example 2 (Use Higher of 1.958-1 Attribution or 1.958-2 Attribution, Thru Domestic C Corp)
  10. 1.958-2(g), Example 3 (Downward Attribution Thru Partnership & Corp)
  11. 1.958-2(g), Example 4 (No Downward Attribution From Foreign Corp (Old Law))
  12. 1.958-2(g), Example 5 (No Family Attribution From Foreign Persons)
  13. 1.958-2(g), Example 6 (Family Attribution From U.S. Spouse)

All 1,000+ charts on can be viewed in topical order here or alpha-numeric order here.

Tags: 951 Subpart F Income, Charts - Situational Charts