Reg. § 1.382-7 Built-in gains and losses.
(a) Treatment of prepaid income For purposes of section , prepaid income is not recognized built-in gain. The term prepaid income means any amount received prior to the change date that is attributable to performance occurring on or after the change date. Examples to which this will apply include, but are not limited to, income received prior to the change date that is deferred under section or Rev. Proc. 2004-34 (2004-1 CB 991 (June 1, 2004)) (or any successor revenue procedure) (see ).
(b) Effective/applicability dates This section applies to loss corporations that have undergone an ownership change on or after June 11, 2010. For loss corporations that have undergone an ownership change before June 11, 2010, see § as contained in 26 CFR part 1, revised April 1, 2009.
(c) [Reserved]
(d) Special rules This contains special rules regarding the identification of recognized built-in losses.
(1)-(4) [Reserved]
(5) Section 382 disallowed business interest carryforwards Section disallowed business interest carryforwards are not treated as recognized built-in losses.
(e)-(f) [Reserved]
(g) Applicability dates
(1)-(3) [Reserved]
(4) Paragraph (d)(5) of this section of this section applies with respect to an ownership change occurring on or after November 13, 2020. For loss corporations that have undergone an ownership change before or after November 13, 2020, see as contained in 26 CFR part 1, revised April 1, 2019. However, taxpayers and their related parties, within the meaning of sections and , may choose to apply the rules of of this section to testing dates occurring during a taxable year beginning after December 31, 2017.
[T.D. 9487, 75 FR 33992, June 16, 2010, as amended by T.D. 9870, 84 FR 33692, July 15, 2019; T.D. 9905, 85 FR 56837, Sept. 14, 2020]