(a) through (b)(3) [Reserved]. For further guidance, see §1.987-6(a) through (b)(3).

(4) Source of section 987 gain or loss with respect to a dollar QBU. The source of section 987 gain or loss with respect to a dollar QBU (as defined in §1.987-1T(b)(6)(i)) for which the CFC owner has elected under §1.987-1T(b)(6)(iii) to apply section 987 is determined by reference to the residence of the CFC owner. This paragraph (b)(4) applies to any CFC that has made the election under §1.987-1T(b)(6)(iii), including a CFC described in §1.987-1(b)(1)(ii).

(c) [Reserved]. For further guidance, see §1.987-6(c).

(d) Effective/applicability date. This section applies to taxable years beginning on or after one year after the first day of the first taxable year following December 7, 2016. Notwithstanding the preceding sentence, if a taxpayer makes an election under §1.987-11(b), then this section applies to taxable years to which §§1.987-1 through 1.987-10 apply as a result of such election.

(e) Expiration date. The applicability of this section expires on December 6, 2019.

[T.D. 9795, 81 FR 88874, Dec. 8, 2016]