26 CFR §1.482-8

1. (a)Introduction. In accordance with the best method rule of § 1.482-1(c), a method may be applied in a particular case only if the comparability, quality of data, and reliability of assumptions under that method make it more reliable than any other available measure of the arm's length result. The following examples illustrate the comparative analysis required to apply this rule. As with all of the examples in these regulations, these examples are based on simplified facts, are provided solely for purposes of illustrating the type of analysis required under the relevant rule, and do not provide rules of general application. Thus, conclusions reached in these examples as to the relative reliability of methods are based on the assumed facts of the examples, and are not general conclusions concerning the relative reliability of any method.
2. (b)Examples.
3. (c)Effective/applicability date
   1. (1)In general. Paragraphs (a) and (b) Examples 10 through 12 of this section are generally applicable for taxable years beginning after December 31, 2006. Paragraph (b) Examples 13 through 18 of this section are generally applicable on January 5, 2009.
   2. (2)Election to apply regulation to earlier taxable years. A person may elect to apply the provisions of paragraph (b) Examples 10,11, and 12 of this section to earlier taxable years in accordance with the rules set forth in § 1.482-9(n)(2).