2026-04-07
In February 2026, the IRS published Notice 2026-17. This notice announced new rules that permit taxpayers to determine taxable income or loss and foreign currency gain or loss with respect to a qualified business unit (QBU) using a method that is substantially similar to the method provided in regulations proposed in 1991.
This new method, the equity and basis pool method, is dramatically less complicated than the method provided in the final Section 987 regulations. The equity and basis pool method is a welcome relief, especially for small businesses with QBUs.
We have created a web page that performs the Section 987 calculations under Notice 2026-17.
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The posts on this blog have not been verified for accuracy. You should consult an attorney for legal advice regarding your own situation. These posts are not updated for changes in the tax laws. Further, these posts should not be relied upon for any purpose whatsoever.
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