26 U.S.C. § 989
Other definitions and special rules
# (a) Qualified business unit
For purposes of this subpart, the term “qualified business unit” means any separate and clearly identified unit of a trade or business of a taxpayer which maintains separate books and records.
# (b) Appropriate exchange rate
Except as provided in regulations, for purposes of this subpart, the term “appropriate exchange rate” means— (1) in the case of an actual distribution of earnings and profits, the spot rate on the date such distribution is included in income, (2) in the case of an actual or deemed sale or exchange of stock in a foreign corporation treated as a dividend under section 1248, the spot rate on the date the deemed dividend is included in income, (3) in the case of any amounts included in income under section 951(a)(1)(A) or 1293(a), the average exchange rate for the taxable year of the foreign corporation, or (4) in the case of any other qualified business unit of a taxpayer, the average exchange rate for the taxable year of such qualified business unit. For purposes of the preceding sentence, any amount included in income under section 951(a)(1)(B) shall be treated as an actual distribution made on the last day of the taxable year for which such amount was so included.
# (c) Regulations
The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this subpart, including regulations— (1) setting forth procedures to be followed by taxpayers with qualified business units using a net worth method of accounting before the enactment of this subpart, (2) limiting the recognition of foreign currency loss on certain remittances from qualified business units, (3) providing for the recharacterization of interest and principal payments with respect to obligations denominated in certain hyperinflationary currencies, (4) providing for alternative adjustments to the application of section 905(c), (5) providing for the appropriate treatment of related party transactions (including transactions between qualified business units of the same taxpayer), and (6) setting forth procedures for determining the average exchange rate for any period.
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Cited by 30
- 26 CFR § 1.1503(d)-5 — Attribution of items and basis adjustments.
- 26 CFR § 1.367(b)-2 — Definitions and special rules.
- 26 CFR § 1.367(b)-7 — Carryover of earnings and profits and foreign income taxes in certain foreign-to-foreign nonrecognition transactions.
- 26 CFR § 1.367(b)-9 — Special rule for F reorganizations and similar transactions.
- 26 CFR § 1.385-3 — Certain distributions of debt instruments and similar transactions.
- 26 CFR § 1.446-3 — Notional principal contracts.
- 26 CFR § 1.861-9 — Allocation and apportionment of interest expense and rules for asset-based apportionment.
- 26 CFR § 1.863-10 — Source of income from a qualified fails charge.
- 26 CFR § 1.863-7 — Allocation of income attributable to certain notional principal contracts under section 863(a).
- 26 CFR § 1.865-2 — Loss with respect to stock.
- 26 CFR § 1.884-1 — Branch profits tax.
- 26 CFR § 1.904-4 — Separate application of section 904 with respect to certain categories of income.
Show 18 more
- 26 CFR § 1.905-3 — Adjustments to U.S. tax liability and to current earnings and profits as a result of a foreign tax redetermination.
- 26 CFR § 1.954-1 — Foreign base company income.
- 26 CFR § 1.954-2 — Foreign personal holding company income.
- 26 CFR § 1.985-1 — Functional currency.
- 26 CFR § 1.985-2 — Election to use the United States dollar as the functional currency of a QBU.
- 26 CFR § 1.985-3 — United States dollar approximate separate transactions method.
- 26 CFR § 1.985-7 — Adjustments required in connection with a change to DASTM.
- 26 CFR § 1.986(a)-1 — Translation of foreign income taxes for purposes of the foreign tax credit.
- 26 CFR § 1.987-7 — Application of the section 987 regulations to partnerships and S corporations.
- 26 CFR § 1.988-1 — Certain definitions and special rules.
- 26 CFR § 1.989(a)-1 — Definition of a qualified business unit.
- 26 CFR § 1.989(b)-1 — Definition of weighted average exchange rate.
- 26 CFR § 4.954-1 — Foreign base company income; taxable years beginning after December 31, 1986.
- 26 U.S.C. § 7701 — Definitions
- 26 U.S.C. § 856 — Definition of real estate investment trust
- 26 U.S.C. § 904 — Limitation on credit
- 26 U.S.C. § 953 — Insurance income
- 26 U.S.C. § 954 — Foreign base company income
Nearby sections (25 sections)
- 963 · Repealed. Pub. L. 94–12, title VI, § 602(a)(1), Mar. 29, 1975, 89…
- 964 · Miscellaneous provisions
- 965 · Treatment of deferred foreign income upon transition to…
- 970 · Reduction of subpart F income of export trade corporations
- 971 · Definitions
- 972 · Repealed. Pub. L. 94–455, title XIX, § 1901(a)(120), Oct. 4,…
- 981 · Repealed. Pub. L. 94–455, title X, § 1012(b)(2), Oct. 4, 1976, 90…
- 982 · Admissibility of documentation maintained in foreign countries
- 985 · Functional currency
- 986 · Determination of foreign taxes and foreign corporation’s earnings…
- 987 · Branch transactions
- 988 · Treatment of certain foreign currency transactions
- 989 · Other definitions and special rules
- 991 · Taxation of a domestic international sales corporation
- 992 · Requirements of a domestic international sales corporation
- 993 · Definitions and special rules
- 994 · Inter-company pricing rules
- 995 · Taxation of DISC income to shareholders
- 996 · Rules for allocation in the case of distributions and losses
- 997 · Special subchapter C rules
- 999 · Reports by taxpayers; determinations
- 1000 · Reserved
- 1001 · Determination of amount of and recognition of gain or loss
- 1002 · Repealed. Pub. L. 94–455, title XIX, § 1901(b)(28)(B)(i), Oct.…
- 1011 · Adjusted basis for determining gain or loss