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    Created by Michael Wessels
    1. U.S. Code
    2. Title 26
    3. Subtitle A
    4. CHAPTER 1
    5. Subchapter N
    6. PART III
    7. Subpart J

    § 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 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.

    (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 ,

    (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.