CFR > Title 26 - Internal Revenue > CHAPTER I—INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY > SUBCHAPTER A—INCOME TAX (Parts 1–19) > PART 1—INCOME TAXES > 1.706-2T—Temporary regulations; question and answer under the Tax Reform Act of 1984.

1.706-2T—Temporary regulations; question and answer under the Tax Reform Act of 1984.

Question 1: For purposes of section 706(d), how is an otherwise deductible amount that is deferred under section 267(a)(2) treated?
Answer 1: In the year the deduction is allowed, the deduction will constitute an allocable cash basis item under section 706(d)(2)(B)(iv).

Code of Federal Regulations

(Secs. 267(f)(2)(B), 706(d)(2)(B)(iv), 1502, and 7805, Internal Revenue Code of 1954 (98 Stat. 704, 26 U.S.C. 267 ; 98 Stat. 589, 26 U.S.C. 706 ; 68A Stat. 367, 26 U.S.C. 1502 ; 68A Stat. 917, 26 U.S.C. 7805 ))

Code of Federal Regulations

[T.D. 7991, 49 FR 47001, Nov. 30, 1984]