Andrew Mitchel LLC

TD 9794: Income and Currency Gain or Loss With Respect to a Section 987 QBU

Date: 2016-12-08
Links to Federal Register: HTML, PDF (Proposed Regulation: REG-208270-86 HTML, PDF)
Document Number: 2016-28381, RIN: 1545-AM12
Action: Final regulations.

Abstract: This document contains final regulations that provide guidance under section 987 of the Internal Revenue Code (Code) regarding the determination of the taxable income or loss of a taxpayer with respect to a qualified business unit (QBU) subject to section 987, as well as the timing, amount, character, and source of any section 987 gain or loss. Taxpayers affected by these regulations are corporations and individuals that own QBUs subject to section 987. In addition, published elsewhere in this issue of the Federal Register, temporary and proposed regulations (the temporary regulations) are being issued under section 987 to address aspects of the application of section 987 not addressed in these final regulations.

Word frequency
Notable phrases   Frequency
section 987 QBU      581
asset(s) (and|or) liabilit(ies|y)      150
books and records      106
OFCNV      88
yearly average exchange rate(s)      75
transferred from the owner      16
translated into dollars      16
functional currency of the section 987      15
accumulated unrecognized section 987 gain      14
exchange rate for the taxable year      13
net value of the section 987 QBU      11
steps 1 through 5      11
use spot rates in lieu of yearly average exchange      10

Reg. Cites   Frequency
1.987-4      24
1.987-11      17
1.987-1      17
1.987-3      17
1.987-7      16
1.987-5      16
1.987-1(c)(1)      12
1.987-1(c)(3)      11
1.987-2(b)      10
1.987-1(c)(1)(iii)      9
1.987-1(b)(5)(i)(B)      8
1.987-8      8
1.987-1(e)      8
1.987-3(c)(2)(iv)(B)      8
1.987-1(c)(3)      8
1.987-10      8
1.988-1(a)(10)      7
1.987-9      7
1.987-11(b)      6
1.987-11(a)      6

Sec. Cites   Frequency
987      1085
988      37
267(b)      18
351      11
954(c)(1)(D)      8
381(a)      7
332      4
481(a)      4
957      4
987(3)      4
989(c)(5)      3
951(b)      3
952      2
1092      2
987(1)      2
954      2
752      2
902      2
986(a)      1

Authorities Referenced:


Statistics

Number of pages: 47, words: 50,354, sentences: 1,766
Average words per sentence: 28