Par 3. Section 1.987-4 is amended by adding paragraph (d)(10)(ii)(D) to read as follows:
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(d) * * *
(10) * * *
(ii) * * *
(D) Recurring transfer group. In order to determine the residual increase or decrease to net assets under this paragraph (d)(10) in a taxable year in which transfers of grouped assets are disregarded under § 1.987-2(f)(5), the transfers of grouped assets are disregarded for purposes of applying steps 2 and 3 (paragraphs (d)(2) and (3) of this section) in the functional currency of the section 987 QBU.
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