# Prop. Treas. Reg. § 1.367(b)-3: Repatriation of foreign corporate assets in certain nonrecognition transactions.

Proposed regulation, not in force. REG-103844-26, 91 FR 52553, published 2026-08-14 <https://www.federalregister.gov/documents/2026/08/14/2026-16569/foreign-currency-gain-or-loss-of-controlled-foreign-corporations>. Interprets 26 U.S.C. § 367.

Par. 2. Section 1.367(b)-3 is amended by: 1. Revising the introductory text of paragraph (g)(2)(i); and 2. Adding a sentence to the end of paragraph (g)(7)(i). The revisions and addition read as follows:

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(g) * * *

(2) * * *

(i) Excess asset basis. The term excess asset basis means, with respect to a foreign acquired corporation, the amount (determined after the application of § 1.987-16(d)) by which the inside asset basis of that corporation exceeds the sum of the following amounts:

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(7) * * *

(i) * * * Paragraph (g)(2)(i) of this section, to the extent it relates to the application of § 1.987-16(d), applies to transactions completed within taxable years of the domestic acquiring corporation ending on or after [date of filing of final regulations with the Federal Register ].

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