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Taxable Income or Loss and Currency Gain or Loss With Respect to a Qualified Business Unit; Correction

---
identifier: "/us/fr/2025-01248"
source: "fr"
legal_status: "authoritative_unofficial"
title: "Taxable Income or Loss and Currency Gain or Loss With Respect to a Qualified Business Unit; Correction"
title_number: 0
title_name: "Federal Register"
section_number: "2025-01248"
section_name: "Taxable Income or Loss and Currency Gain or Loss With Respect to a Qualified Business Unit; Correction"
positive_law: false
currency: "2025-01-17"
last_updated: "2025-01-17"
format_version: "1.1.0"
generator: "[email protected]"
agency: "Treasury Department"
document_number: "2025-01248"
document_type: "rule"
publication_date: "2025-01-17"
agencies:
  - "Treasury Department"
  - "Internal Revenue Service"
cfr_references:
  - "26 CFR Part 1"
rin: "1545-BO07"
fr_citation: "90 FR 5606"
fr_volume: 90
docket_ids:
  - "TD 10016"
effective_date: "2025-01-17"
fr_action: "Final rule; correction and correcting amendments."
---

#  [Amended]

**AGENCY:**

Internal Revenue Service (IRS), Treasury.

**ACTION:**

Final rule; correction and correcting amendments.

**SUMMARY:**

This document includes corrections to a final regulation (Treasury Decision 10016) published in the *Federal Register* on Wednesday, December 11, 2024. Treasury Decision 10016 contained final regulations relating to the determination of taxable income or loss and foreign currency gain or loss with the respect to a qualified business unit.

**DATES:**

These corrections are effective on January 17, 2025. For dates of applicability, see § 1.987-15.

**FOR FURTHER INFORMATION CONTACT:**

Concerning the final regulations generally, Adam G. Province at (865) 329-4546; concerning the character and source of section 987 gain or loss, Larry Pounders at (202) 317-5465; concerning consolidated groups, Jeremy Aron-Dine  at (202) 317-6847 (not toll-free numbers).

**SUPPLEMENTARY INFORMATION:**

**Background**

The final regulations (TD 10016) that are the subject of this correction are under sections 861, 985 through 989, and 1502 of the Internal Revenue Code.

**Corrections to Publication**

Accordingly, FR Doc. 2024-28372 (TD 10016) appearing on page 100138 in the *Federal Register* on Wednesday, December 11, 2024, is corrected as follows:

1. On page 100155, in the third column, under the caption “A. Loss Suspension Rule 1. In General”, the second line of the third full paragraph is corrected to read “proposed § 1.987-11(c)”.

**List of Subjects in 26 CFR Part 1**

Income taxes, Reporting and recordkeeping requirements.

**Correction to the Regulations**

Accordingly, 26 CFR part 1 is corrected by making the following correcting amendments:

**PART 1—INCOME TAXES**

**26 CFR Part 1**

*Paragraph 1.* The authority citation for part 1 continues to read in part as follows:

**Authority:**

26 U.S.C. 7805 * * *

**26 CFR Part 1**

*Par. 2.* Section 1.987-1 is amended by revising the first sentence of paragraph (b)(3)(ii)(A) to read as follows:

§ 1.987-1

(b) * * *

(3) * * *

(ii) * * *

(A) * * * Solely for purposes of section 987, an owner may elect to treat all section 987 QBUs with the same functional currency as a single section 987 QBU except to the extent provided in paragraph (b)(3)(ii)(B) of this section. * * *

**26 CFR Part 1**

*Par. 3.* Section 1.987-2 is amended by revising the second sentence of paragraph (c)(10)(xviii)(B)( *2* ) to read as follows:

§ 1.987-2

(c) * * *

(10) * * *

(xviii) * * *

(B) * * *

( *2* ) * * * Under § 1.987-5(c)(4) and § 1.987-8(e), a termination of a section 987 QBU is treated as a remittance of all the gross assets of the section 987 QBU to the owner on the date of the termination. * * *

**26 CFR Part 1**

§ 1.1502-13

*Par. 4.* Section 1.1502-13 is amended by redesignating the second occurrence of paragraph (j)(10)(vi) as (j)(10)(vii).

Regina L. Johnson,

Federal Register Liaison, Publications and Regulations Section, Associate Chief Counsel (Procedure and Administration).