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REG-103844-26: Foreign Currency Gain or Loss of Controlled Foreign Corporations

Date: 2026-08-14
Links to Federal Register: HTML, PDF
Document Number: 2026-16569, RIN: 1545-BS16
Action: Notice of proposed rulemaking.

Abstract: This document contains proposed regulations providing rules relating to the determination and recognition of foreign currency gain or loss with respect to qualified business units ("QBUs") of controlled foreign corporations ("CFCs"). The proposed regulations provide an election under which a CFC generally would not be required to compute or recognize foreign currency gain or loss upon a remittance from a QBU, except in connection with certain inbound nonrecognition transactions.

Word frequency
Notable phrases   Frequency
cfc exemption election      170
987 gain or loss      161
section 987 qbu      108
pre-election section 987 gain or loss      77
inbound nonrecognition transaction      64
987 asset basis      51
unrecognized section 987 gain or loss      33
excess asset basis      32
pretransition gain or loss      30
currency gain or loss      14
987 taxable income or loss      11
deferred section 987 gain or loss      9

Reg. Cites   Frequency
1.987-15      17
1.987-10      15
1.987-16      15
1.987-10(e)(5)(ii)      14
1.367(b)-3(g)(2)(i)      9
1.987-6      9
1.987-16(d)      9
1.987-1(g)(2)      8
1.987-10(c)(1)      7
1.987-17      7
1.987-15(e)      6
1.987-16(d)(1)      5
1.987-1(g)(3)      5
1.987-2(b)(2)(i)(a)      5
1.987-7(b)(2)      5
1.904(i)-1(b)      4
1.367(b)-3      4
1.987-10(e)(3)      4
1.987-4      4
1.987-10(e)(5)(ii)(a)      4

Sec. Cites   Frequency
987      500
987(3)      40
987(1)      10
367(b)      4
958(a)      4
351      3
989(c)      3
989(a)      3
957(a)      3
7805(f)      2
988(a)(3)(B)      2
362(b)      2
334(b)      2
706(d)      2
332      2
334(b)(1)(A)      2
7805(a)      1
861      1

Authorities Referenced:


Statistics

Number of pages: 24, words: 25,364, sentences: 946
Average words per sentence: 26