26 CFR § 1.706-2T - Temporary regulations; question and answer under the Tax Reform Act of 1984.
---
identifier: "/us/cfr/t26/s1.706-2T"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "26 CFR § 1.706-2T - Temporary regulations; question and answer under the Tax Reform Act of 1984."
title_number: 26
title_name: "Internal Revenue"
section_number: "1.706-2T"
section_name: "Temporary regulations; question and answer under the Tax Reform Act of 1984."
chapter_name: "INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY"
subchapter_number: "A"
subchapter_name: "INCOME TAX"
part_number: "1"
part_name: "INCOME TAXES"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "26 U.S.C. 7805, unless otherwise noted."
regulatory_source: "T.D. 6500, 25 FR 11402, Nov. 26, 1960; 25 FR 14021, Dec. 21, 1960; T.D. 9989, 89 FR 17606, Mar. 11, 2024, unless otherwise noted."
cfr_part: "1"
---
# 1.706-2T Temporary regulations; question and answer under the Tax Reform Act of 1984.
*Question 1:* For purposes of section 706(d), how is an otherwise deductible amount that is deferred under section 267(a)(2) treated?
*Answer 1:* In the year the deduction is allowed, the deduction will constitute an allocable cash basis item under section 706(d)(2)(B)(iv).
(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]