§ 1.7874-1T - Disregard of affiliate-owned stock (temporary).

§ 1.7874-1T Disregard of affiliate-owned stock (temporary).

(a) through (c) (2)(ii) [Reserved] For further guidance, see § 1.7874-1(a) through (c)(2)(ii).

(iii) Special rule. If § 1.7874-6T(c)(2) applies for purposes of applying section 7874(c)(2)(A) and § 1.7874-1, then, for purposes of § 1.7874-1(c)(2) (and so much of § 1.7874-1(c)(1) as relates to § 1.7874-1(c)(2)), the determination of the EAG after the acquisition, as well as the determination of stock held by one or more members of the EAG after the acquisition, is made without regard to one or more transfers (other than by issuance), in a transaction (or series of transactions) after and related to the acquisition, of stock of the acquiring foreign corporation by one or more members of the foreign-parented group described in § 1.7874-6T(c)(2)(i).

(c) (3) through (e) [Reserved] For further guidance, see § 1.7874-1(c)(3) through (e).

(f) Treatment of transactions related to the acquisition. Except as provided in paragraph (c)(2)(iii) of this section, all transactions that are related to an acquisition are taken into account in applying this section and § 1.7874-1.

(g) through (h)

(1) [Reserved] For further guidance, see § 1.7874-1(g) through (h)(1).

(2) Applicability date of certain provisions of this section. Except as provided in this paragraph (h)(2), paragraph (c)(2)(iii) of this section applies to domestic entity acquisitions completed on or after April 4, 2016. Except as provided in this paragraph (h)(2), paragraph (f) of this section applies to domestic entity acquisitions completed on or after September 22, 2014. For domestic entity acquisitions completed before April 4, 2016, however, taxpayers may elect to consistently apply paragraphs (c)(2)(iii) and (f) of this section, and § 1.7874-6T(c)(2), (d)(2), and (f)(2)(ii).

(i) Expiration date. This section expires on or before April 4, 2019.

[T.D. 9761, 81 FR 20894, Apr. 8, 2016, as amended at 81 FR 40811, June 23, 2016]