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

<RULE> DEPARTMENT OF THE TREASURY <SUBAGY>Internal Revenue Service</SUBAGY> <CFR>26 CFR Part 1</CFR> <DEPDOC>[TD 10016]</DEPDOC> <RIN>RIN 1545-BO07</RIN> <SUBJECT>Taxable Income or Loss and Currency Gain or Loss With Respect to a Qualified Business Unit; Correction</SUBJECT> <HD SOURCE="HED">AGENCY:</HD> Internal Revenue Service (IRS), Treasury. <HD SOURCE="HED">ACTION:</HD> Final rule; correction and correcting amendments. <SUM> <HD SOURCE="HED">SUMMARY:</HD> This document includes corrections to a final regulation (Treasury Decision 10016) published in the <E T="04">Federal Register</E> 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. </SUM> <EFFDATE> <HD SOURCE="HED">DATES:</HD> These corrections are effective on January 17, 2025. For dates of applicability, see § 1.987-15. </EFFDATE> <FURINF> <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD> 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). </FURINF> <SUPLINF> <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD> <HD SOURCE="HD1">Background</HD> 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. <HD SOURCE="HD1">Corrections to Publication</HD> Accordingly, FR Doc. 2024-28372 (TD 10016) appearing on page 100138 in the <E T="04">Federal Register</E> 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)”. <LSTSUB> <HD SOURCE="HED">List of Subjects in 26 CFR Part 1</HD> Income taxes, Reporting and recordkeeping requirements. </LSTSUB> <HD SOURCE="HD1">Correction to the Regulations</HD> Accordingly, 26 CFR part 1 is corrected by making the following correcting amendments: <HD SOURCE="HED">PART 1—INCOME TAXES</HD> <REGTEXT TITLE="26" PART="1"> <E T="04">Paragraph 1.</E> The authority citation for part 1 continues to read in part as follows: <HD SOURCE="HED">Authority:</HD> 26 U.S.C. 7805 * * * </REGTEXT> <REGTEXT TITLE="26" PART="1"> <E T="04">Par. 2.</E> Section 1.987-1 is amended by revising the first sentence of paragraph (b)(3)(ii)(A) to read as follows: <SECTION> <SECTNO>§ 1.987-1</SECTNO> <SUBJECT> Scope, definitions, and special rules.</SUBJECT> <STARS/> (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. * * * <STARS/> </SECTION> </REGTEXT> <REGTEXT TITLE="26" PART="1"> <E T="04">Par. 3.</E> Section 1.987-2 is amended by revising the second sentence of paragraph (c)(10)(xviii)(B)( <E T="03">2</E> ) to read as follows: <SECTION> <SECTNO>§ 1.987-2 </SECTNO> <SUBJECT>Attribution of items to eligible QBUs; definition of a transfer and related rules.</SUBJECT> ) * * * 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. * * * <STARS/> </SECTION> </REGTEXT> <REGTEXT TITLE="26" PART="1"> <SECTION> <SECTNO>§ 1.1502-13 </SECTNO> <SUBJECT>[Amended]</SUBJECT> </SECTION> <E T="04">Par. 4.</E> Section 1.1502-13 is amended by redesignating the second occurrence of paragraph (j)(10)(vi) as (j)(10)(vii). </REGTEXT> <SIG> <NAME>Regina L. Johnson,</NAME> Federal Register Liaison, Publications and Regulations Section, Associate Chief Counsel (Procedure and Administration). </SIG> </SUPLINF> <FRDOC>[FR Doc. 2025-01248 Filed 1-16-25; 8:45 am]</FRDOC> </RULE>