# Prop. Treas. Reg. § 1.987-4: Determination of net unrecognized section 987 gain or loss of a section 987 QBU.

Proposed regulation, not in force. REG-117213-24, 89 FR 99782, published 2024-12-11 <https://www.federalregister.gov/documents/2024/12/11/2024-28371/accounting-for-disregarded-transactions-between-a-qualified-business-unit-and-its-owner>. Interprets 26 U.S.C. § 987.

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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