Prop. Treas. Reg. § 1.1296-4 Characterization of certain banking income of foreign banks as passive.

Proposed 1998-01-02 · REG-115795-97 · 63 FR 39 · Interprets § 1296

Par. 7 Section 1.1296-4(e) as proposed at 60 FR 20922 (April 28, 1995) is amended by adding a sentence at the end of the paragraph to read as follows:

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(e) Lending activities test. * * * An interbank deposit made in the ordinary course of a corporation's banking business will be treated as a loan for purposes of this section. For the effective date of this paragraph (e), see paragraph (k) of this section.