Treasury Regulations · 26 CFR
§ 1.863-3AT. Income from the sale of personal property derived partly from within and partly from without the United States (temporary regulations).
Regulation text, no changes From the eCFR, current as of October 15, 2026. The eCFR is an authoritative but unofficial editorial compilation of the Code of Federal Regulations; the official text is the annual CFR on govinfo. Compare it with this section on ecfr.gov (external site) or the official annual CFR on govinfo (external site).
Regulation under 26 U.S.C. § 863
Cite as 26 CFR § 1.863-3AT
At a glance
Read from the text and its source citation. Not part of the regulation.
- Status
- In the current eCFR
- Issued
- September 14, 1988 by T.D. 8228
- Last amended
- November 29, 1996 by T.D. 8687
- Issued under
- 26 U.S.C. § 863
- Length
- 371 words · about 2 min to read
- Cross-references
- cites 0 Code sections and 0 regulations; cited by 1
[Reserved]
(i) Where an independent factory or production price has not been established as provided under Example (1), the gross income derived from the sale of personal property produced (in whole or in part) by the taxpayer within the United States and sold within a foreign country or produced (in whole or in part) by the taxpayer within a foreign country and sold within the United States shall be computed.
(ii) Of this gross amount, one-half shall be apportioned in accordance with the value of the taxpayer's property within the United States and within the foreign country, the portion attributable to sources within the United States being determined by multiplying such one-half by a fraction, the numerator of which consists of the value of the taxpayer's property within the United States and the denominator of which consists of the value of the taxpayer's property both within the United States and within the foreign country. The remaining one-half of such gross income shall be apportioned in accordance with the gross sales of the taxpayer within the United States and within the foreign country, the portion attributable to sources within the United States being determined by multiplying such one-half by a fraction the numerator of which consists of the taxpayer's gross sales for the taxable year or period within the United States, and the denominator of which consists of the taxpayer's gross sales for the taxable year or period both within the United States and within the foreign country. Deductions from gross income that are allocable and apportionable to gross income described in paragraph (i) of this Example 2 shall be apportioned between the United States and foreign source portions of such income, as determined under this paragraph (ii), on a pro rata basis, without regard to whether the deduction relates primarily or exclusively to the production of property or to the sale of property.
[T.D. 8228, 53 FR 35506, Sept. 14, 1988. Redesignated by T.D. 8687, 61 FR 60545, Nov. 29, 1996]
Cross-references
Computed from the citations in the text of 26 CFR.
Cited by 1 other regulation
Amendment history
From the source citation at the end of the section, newest first. T.D. is a Treasury decision; FR is the Federal Register.
- Amended by T.D. 8687 (61 FR 60545)
- Issued by T.D. 8228 (53 FR 35506)
Where it sits in 26 CFR
- Subchapter A Income tax
- Part 1 Income taxes
- Regulations applicable to taxable years prior to december 30, 1996
Nearby sections
- § 1.863-3A Income from the sale of personal property derived partly from within and partly from without the United States.
- § 1.863-3AT Income from the sale of personal property derived partly from within and partly from without the United States (temporary regulations).
- § 1.863-4 Certain transportation services.
- § 1.863-6 Income from sources within a foreign country.
- § 1.863-7 Allocation of income attributable to certain notional principal contracts under section 863(a).
- § 1.863-8 Source of income derived from space and ocean activity under section 863(d).