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Final Section 987 regulations provide guidance to certain qualified business units

December 28, 2016 / 2 min read

If your business includes a “qualified business unit” (QBU) that operates outside of the U.S. using a foreign currency, new regulations under Section 987 provide guidance on determining income and loss.

On December 7, 2016, the IRS and Treasury Department released final and temporary regulations to Section 987, which provides guidance on taxable income of a qualified business unit (QBU) operating in a functional currency other than the U.S Dollar. Following are the highlights:

Final regulations

Temporary regulations

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