Treasury Regulations · 26 CFR
§ 7.936-1. Qualified possession source investment income.
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. § 936
Cite as 26 CFR § 7.936-1
At a glance
Read from the text and its source citation. Not part of the regulation.
- Status
- In the current eCFR
- Issued
- December 30, 1976 by T.D. 7452
- Issued under
- 26 U.S.C. § 936
- Length
- 170 words · about 1 min to read
- Cross-references
- cites 1 Code section and 0 regulations; cited by 0
For purposes of this section, interest earned after September 30, 1976 (less applicable deductions), by a domestic corporation, engaged in the active conduct of a trade or business in Puerto Rico, which elects the application of section 936 with respect to deposits with certain Puerto Rican financial institutions will be treated as qualified possession source investment income within the meaning of section 936(d)(2) if (1) the interest qualifies for exemption from Puerto Rican income tax under regulations issued by the Secretary of the Treasury of Puerto Rico, as in effect on September 28, 1976, under the authority of section 2(j) of the Puerto Rico Industrial Incentive Act of 1963, as amended, (2) the interest is from sources within Puerto Rico (within the meaning of section 936(d)(2)(A)), and (3) the funds with respect to which the interest is earned are derived from the active conduct of a trade or business in Puerto Rico or from investment of funds so derived.
[T.D. 7452, 41 FR 56794, Dec. 30, 1976]
Cross-references
Computed from the citations in the text of 26 CFR.
Code sections it cites
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.
- Issued by T.D. 7452 (41 FR 56794)
Where it sits in 26 CFR
- Subchapter A Income tax
- Part 7 Temporary income tax regulations under the tax reform act of 1976
Nearby sections
- § 7.465-2 Determination of amount at risk.
- § 7.465-3 Allocation of loss for different taxable years.
- § 7.465-4 Insufficient records.
- § 7.465-5 Examples.
- § 7.936-1 Qualified possession source investment income.
- § 7.999-1 Computation of the international boycott factor.
- § 7.6039A-1 Information regarding carryover basis property acquired from a decedent.