Reg. § 1.706-2T Temporary regulations; question and answer under the Tax Reform Act of 1984.

26 CFR § 1.706-2TeCFR, current through 2026-07-14

Question 1: For purposes of section , how is an otherwise deductible amount that is deferred under section treated?

Answer 1: In the year the deduction is allowed, the deduction will constitute an allocable cash basis item under section .

(Secs. 267(f)(2)(B), 706(d)(2)(B)(iv), 1502, and 7805, Internal Revenue Code of 1954 (98 Stat. 704, 26 U.S.C. 267; 98 Stat. 589, 26 U.S.C. 706; 68A Stat. 367, 26 U.S.C. 1502; 68A Stat. 917, 26 U.S.C. 7805))

[T.D. 7991, 49 FR 47001, Nov. 30, 1984]