Code of Federal Regulations Title 26. Internal Revenue § 26.1.985–0 Outline of regulation

This section lists the paragraphs contained in §§ 1.985–1 through 1.985–6.

§ 1.985–1

(a) Applicability and effective date.

(b) Dollar functional currency.

(c) Functional currency of a QBU that is not required to use the dollar.

(d) Single functional currency for a foreign corporation.

(e) Translation of nonfunctional currency transactions.

(f) Examples.

§ 1.985–2

(a) Background and scope.

(b) Eligible QBU.

(c) Time and manner for dollar election.

(d) Effect of dollar election.

§ 1.985–3

(a) Scope and effective date.

(b) Statement of method.

(c) Translation into United States dollars.

(d) Computation of DASTM gain or loss.

(e) Effect of DASTM gain or loss on gross income, taxable income, or earnings and profits.

§ 1.985–4

(a) Adoption or election.

(b) Condition for changing functional currencies.

(c) Relationship to certain other sections of the Code.

§ 1.985–5

(a) In general.

(b) Step 1—Taking into account exchange gain or loss on certain section 988 transactions.

(c) Step 2—Determining the new functional currency basis of property and the new functional currency amount of liabilities and any other relevant items.

(d) Step 3A—Additional adjustments that are necessary when a branch changes functional currency.

(e) Step 3B—Additional adjustments that are necessary when a taxpayer changes functional currency.

(f) Examples.

§ 1.985–6

(a) In general.

(b) Certain controlled foreign corporations.

(c) All other foreign corporations.

(d) Pre–1987 section 902 amounts.

(e) Net worth branch.

(f) Profit and loss branch.