Treasury Regulations (26 C.F.R.)
26 CFR § 1.897-7T
Treatment of certain partnership interests as entirely U.S. real property interests under sections 897(g) and 1445(e) (temporary).
# (a) Rule.
Pursuant to section 897(g), an interest in a partnership in which, directly or indirectly, fifty percent or more of the value of the gross assets consist of U.S. real property interests, and ninety percent or more of the value of the gross assets consist of U.S. real property interests plus any cash or cash equivalents shall, for purposes of section 1445, be treated as entirely a U.S. real property interest. For purposes of section 897(g), such interest shall be treated as a U.S. real property interest only to the extent that the gain on the disposition is attributable to U.S. real property interests (and not cash, cash equivalents or other property). Consequently, a disposition of any portion of such partnership interest shall be subject to partial taxation under section 897(a) and full withholding under section 1445(a). For purposes of this paragraph, cash equivalent means any asset readily convertible into cash (whether or not denominated in U.S. dollars) including, but not limited to, bank accounts, certificates of deposit, money market accounts, commercial paper, U.S. and foreign treasury obligations and bonds, corporate obligations and bonds, precious metals or commodities, and publicly traded instruments.
# (b) Effective date.
Section 1.897-7T shall be effective for transfers, exchanges, distributions and other dispositions occurring after June 6, 1988.
# (c) Coordination with section 864(c)(8).
[Reserved]. For further guidance, see § 1.897-7(c).
[T.D. 8198, 53 FR 16228, May 5, 1988, as amended by T.D. 9919, 85 FR 70971, Nov. 6, 2020]
Source: view the official text
In this part (40 sections)
- 1.892-2T · Foreign government defined (temporary regulations).
- 1.892-3 · Income of foreign governments.
- 1.892-3T · Income of foreign governments (temporary regulations).
- 1.892-4 · Commercial activities.
- 1.892-4T · Commercial activities (temporary regulations).
- 1.892-5 · Controlled commercial entity.
- 1.892-5T · Controlled commercial entity (temporary regulations).
- 1.892-6T · Income of international organizations (temporary…
- 1.892-7T · Relationship to other Internal Revenue Code sections…
- 1.893-1 · Compensation of employees of foreign governments or…
- 1.894-1 · Income affected by treaty.
- 1.895-1 · Income derived by a foreign central bank of issue, or by Bank…
- 1.897-1 · Taxation of foreign investment in United States real property…
- 1.897-2 · United States real property holding corporations.
- 1.897-3 · Election by foreign corporation to be treated as a domestic…
- 1.897-4AT · Table of contents (temporary).
- 1.897-5 · Corporate distributions.
- 1.897-5T · Corporate distributions (temporary).
- 1.897-6T · Nonrecognition exchanges applicable to corporations, their…
- 1.897-7 · Treatment of certain partnership interests, trusts and…
- 1.897-7T · Treatment of certain partnership interests as entirely U.S.…
- 1.897-8T · Status as a U.S. real property holding corporation as a…
- 1.897-9T · Treatment of certain interest in publicly traded…
- 1.897(l)-1 · (l)-1 Exception for interests held by foreign pension…
- 1.901-1 · Allowance of credit for foreign income taxes.
- 1.901-2 · Income, war profits, or excess profits tax paid or accrued.
- 1.901-2A · Dual capacity taxpayers.
- 1.901-3 · Reduction in amount of foreign taxes on foreign mineral…
- 1.901(j)-1 · (j)-1 Denial of foreign tax credit with respect to certain…
- 1.901(m)-1 · (m)-1 Definitions.
- 1.901(m)-2 · (m)-2 Covered asset acquisitions and relevant foreign…
- 1.901(m)-3 · (m)-3 Disqualified tax amount and aggregate basis…
- 1.901(m)-4 · (m)-4 Determination of basis difference.
- 1.901(m)-5 · (m)-5 Basis difference taken into account.
- 1.901(m)-6 · (m)-6 Successor rules.
- 1.901(m)-7 · (m)-7 De minimis rules.
- 1.901(m)-8 · (m)-8 Miscellaneous.
- 1.902-0 · Outline of regulations provisions for section 902.
- 1.902-1 · Credit for domestic corporate shareholder of a foreign…
- 1.902-2 · Treatment of deficits in post-1986 undistributed earnings and…