26 U.S.C. § 989 : US Code - Section 989: Other definitions and special rules

Search 26 U.S.C. § 989 : US Code - Section 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.