Internal Revenue Code · 26 U.S.C.
§ 482. Allocation of income and deductions among taxpayers
Official text, no changes From the Office of the Law Revision Counsel, release point 119-121 (current through Public Law 119-121 (October 9, 2026)). Compare it with the official text at uscode.house.gov (external site).
Cite as 26 U.S.C. § 482
At a glance
Read from the text, the source credit and the official notes. Not part of the law.
- Status
- In force
- Enacted
- October 4, 1976 by Pub. L. 94–455
- Last amended
- March 23, 2018 by Pub. L. 115–141
- Amendments
- 3 dated changes in the source credit
- Length
- 255 words · about 1 min to read
- Cross-references
- cites 1; cited by 14 Code sections and 67 other regulations
- Regulations
- 14 issued under this section
In any case of two or more organizations, trades, or businesses (whether or not incorporated, whether or not organized in the United States, and whether or not affiliated) owned or controlled directly or indirectly by the same interests, the Secretary may distribute, apportion, or allocate gross income, deductions, credits, or allowances between or among such organizations, trades, or businesses, if he determines that such distribution, apportionment, or allocation is necessary in order to prevent evasion of taxes or clearly to reflect the income of any of such organizations, trades, or businesses. In the case of any transfer (or license) of intangible property (within the meaning of section 367(d)(4)), the income with respect to such transfer or license shall be commensurate with the income attributable to the intangible. For purposes of this section, the Secretary shall require the valuation of transfers of intangible property (including intangible property transferred with other property or services) on an aggregate basis or the valuation of such a transfer on the basis of the realistic alternatives to such a transfer, if the Secretary determines that such basis is the most reliable means of valuation of such transfers.
(Aug. 16, 1954, ch. 736, 68A Stat. 162; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 99–514, title XII, § 1231(e)(1), Oct. 22, 1986, 100 Stat. 2562; Pub. L. 115–97, title I, § 14221(b)(2), Dec. 22, 2017, 131 Stat. 2219; Pub. L. 115–141, div. U, title IV, § 401(d)(1)(D)(viii)(III), Mar. 23, 2018, 132 Stat. 1207.)
Regulations under this section
Treasury regulations (26 CFR) issued under § 482
- § 1.482-0 Outline of regulations under section 482.
- § 1.482-1 Allocation of income and deductions among taxpayers.
- § 1.482-1T Allocation of income and deductions among taxpayers (temporary).
- § 1.482-2 Determination of taxable income in specific situations.
- § 1.482-3 Methods to determine taxable income in connection with a transfer of tangible property.
- § 1.482-4 Methods to determine taxable income in connection with a transfer of intangible property.
- § 1.482-5 Comparable profits method.
- § 1.482-6 Profit split method.
- § 1.482-7 Methods to determine taxable income in connection with a cost sharing arrangement.
- § 1.482-8 Examples of the best method rule.
- § 1.482-9 Methods to determine taxable income in connection with a controlled services transaction.
- § 1.482-1A Allocation of income and deductions among taxpayers.
- § 1.482-2A Determination of taxable income in specific situations.
- § 1.482-7A Methods to determine taxable income in connection with a cost sharing arrangement.
Cross-references
Computed from the citations in the text of Title 26 and 26 CFR.
This section cites 1 other section
Cited by 14 Code sections
- § 51(c)(2)(B) Amount of credit
- § 59A(d)(5)(A) Tax on base erosion payments of taxpayers with substantial gross receipts
- § 512(b)(13)(E)(i) Unrelated business taxable income
- § 845(a) Certain reinsurance agreements
- § 857(b)(7)(B)(i) Taxation of real estate investment trusts and their beneficiaries
- § 901(i)(1) Taxes of foreign countries and of possessions of United States
- § 994(a) Inter-company pricing rules
- § 1059A(a) Limitation on taxpayer’s basis or inventory cost in property imported from related persons
- § 1358(c) Allocation of credits, income, and deductions
- § 1505(2) Cross references
- § 6038A(c)(2)(C) Information with respect to certain foreign-owned corporations
- § 6038B(b)(2) Notice of certain transfers to foreign persons
- § 6662(e)(1)(B)(i) Imposition of accuracy-related penalty on underpayments
- § 7874(c)(5) Rules relating to expatriated entities and their foreign parents
Cited in 67 regulations not issued under it
- § 1.30D-2 Definitions for purposes of section 30D.
- § 1.45X-3 Eligible components.
- § 1.59A-3 Base erosion payments and base erosion tax benefits.
- § 1.250(b)-4 Foreign-derived deduction eligible income (FDDEI) sales.
- § 1.263A-1 Uniform capitalization of costs.
- § 1.263A-9 The avoided cost method.
- § 1.267A-2 Hybrid and branch arrangements.
- § 1.367(a)-1 Transfers to foreign corporations subject to section 367(a): In general.
- § 1.367(d)-1T Transfers of intangible property to foreign corporations (temporary).
- § 1.385-3 Certain distributions of debt instruments and similar transactions.
- § 1.467-1 Treatment of lessors and lessees generally.
- § 1.475(a)-4 Valuation safe harbor.
- § 1.475(c)-1 Definitions—dealer in securities.
- § 1.543-1 Personal holding company income.
- § 1.613-4 Gross income from the property in the case of minerals other than oil and gas.
- § 1.631-3 Gain or loss upon the disposal of coal or domestic iron ore with a retained economic interest.
- § 1.704-1 Partner's distributive share.
- § 1.861-8 Computation of taxable income from sources within the United States and from other sources and activities.
- § 1.861-14T Special rules for allocating and apportioning certain expenses (other than interest expense) of an affiliated group of corporations (temporary).
- § 1.861-17 Allocation and apportionment of research and experimental expenditures.
- § 1.863-1 Allocation of gross income under section 863(a).
- § 1.865-3 Source of gross income from sales of personal property (including inventory property) by a nonresident attributable to an office or other fixed place of business in the United States.
- § 1.881-3 Conduit financing arrangements.
- § 1.901-2 Income, war profits, or excess profits tax paid or accrued.
Show 43 more
- § 1.904-4 Separate application of section 904 with respect to certain categories of income.
- § 1.907(c)-1 Definitions relating to FOGEI and FORI (for taxable years beginning after December 31, 1982).
- § 1.907(d)-1 Disregard of posted prices for purposes of chapter 1 of the Code (for taxable years beginning after December 31, 1982).
- § 1.927(a)-1T Temporary regulations; definition of export property.
- § 1.927(d)-2T Temporary regulations; definitions and special rules relating to Foreign Sales Corporation.
- § 1.936-4 Intangible property income in the absence of an election out.
- § 1.936-6 Intangible property income when an election out is made: Cost sharing and profit split options; covered intangibles.
- § 1.937-2 Income from sources within a possession.
- § 1.954-2 Foreign personal holding company income.
- § 1.954-4 Foreign base company services income.
- § 1.954-6 Foreign base company shipping income.
- § 1.970-1 Export trade corporations.
- § 1.992-1 Requirements of a DISC.
- § 1.992-3 Deficiency distributions to meet qualification requirements.
- § 1.993-1 Definition of qualified export receipts.
- § 1.993-3 Definition of export property.
- § 1.993-4 Definition of producer's loans.
- § 1.994-1 Inter-company pricing rules for DISC's.
- § 1.1059A-1 Limitation on taxpayer's basis or inventory cost in property imported from related persons.
- § 1.1239-1 Gain from sale or exchange of depreciable property between certain related taxpayers after October 4, 1976.
- § 1.1400Z2(d)-1 Qualified opportunity funds and qualified opportunity zone businesses.
- § 1.1400Z2(d)-2 Qualified opportunity zone business property.
- § 1.1441-2 Amounts subject to withholding.
- § 1.1473-1 Section 1473 definitions.
- § 1.1502-13 Intercompany transactions.
- § 1.6038A-1 General requirements and definitions.
- § 1.6038A-3 Record maintenance.
- § 1.6038A-4 Monetary penalty.
- § 1.6038B-2 Reporting of certain transfers to foreign partnerships.
- § 1.6662-0 Table of contents.
- § 1.6662-5 Substantial and gross valuation misstatements under chapter 1.
- § 1.6662-5T Substantial and gross valuation misstatements under chapter 1 (temporary).
- § 1.6662-6 Transactions between persons described in section 482 and net section 482 transfer price adjustments.
- § 1.6664-0 Table of contents.
- § 1.6664-4 Reasonable cause and good faith exception to section 6662 penalties.
- § 1.6664-4T Reasonable cause and good faith exception to section 6662 penalties.
- § 1.7701(l)-4 Rules regarding inversion transactions.
- § 1.7872-5T Exempted loans (temporary).
- § 1.7874-12 Definitions.
- § 3.2 Ceiling on deposits.
- § 3.5 Qualified withdrawals.
- § 4.954-2 Foreign personal holding company income; taxable years beginning after December 31, 1986.
- § 509.106 Control of a United States enterprise by a Swiss enterprise.
Amendment history
From the source credit and the official notes, newest first.
- Amended by Pub. L. 115–141
- Amended by Pub. L. 115–97
- Amended by Pub. L. 99–514
- Enacted by Pub. L. 94–455
Where it sits in the Code
- Subtitle A Income Taxes
- Chapter 1 NORMAL TAXES AND SURTAXES
- Subchapter E Accounting Periods and Methods of Accounting
- Part III ADJUSTMENTS
Nearby sections
- § 481 Adjustments required by changes in method of accounting
- § 482 Allocation of income and deductions among taxpayers
- § 483 Interest on certain deferred payments
Official notes
Show the Law Revision Counsel's notes (amendments, effective dates)
Editorial Notes
Amendments
2018—Pub. L. 115–141 substituted “section 367(d)(4)” for “section 936(h)(3)(B)”.
2017—Pub. L. 115–97 inserted at end “For purposes of this section, the Secretary shall require the valuation of transfers of intangible property (including intangible property transferred with other property or services) on an aggregate basis or the valuation of such a transfer on the basis of the realistic alternatives to such a transfer, if the Secretary determines that such basis is the most reliable means of valuation of such transfers.”
1986—Pub. L. 99–514 inserted at end “In the case of any transfer (or license) of intangible property (within the meaning of section 936(h)(3)(B)), the income with respect to such transfer or license shall be commensurate with the income attributable to the intangible.”
1976—Pub. L. 94–455 struck out “or his delegate” after “Secretary”.
Statutory Notes and Related Subsidiaries
Effective Date of 2017 Amendment
Amendment by Pub. L. 115–97 applicable to transfers in taxable years beginning after Dec. 31, 2017, see section 14221(c)(1) of Pub. L. 115–97, set out as a note under section 367 of this title.
Effective Date of 1986 Amendment
Amendment by Pub. L. 99–514 applicable to taxable years beginning after Dec. 31, 1986, but only with respect to transfers after Nov. 16, 1985, or licenses granted after such date, or before such date with respect to property not in existence or owned by the taxpayer on such date, except that for purposes of [former] section 936(h)(5)(C) of this title, such amendment applicable to taxable years beginning after Dec. 31, 1986, without regard to when the transfer or license was made, see section 1231(g)(2) of Pub. L. 99–514, set out as a note under section 367 of this title.
Regulations
For requirement that, not later than 180 days after July 18, 1984, the Secretary of the Treasury modify the safe harbor interest rates applicable under the regulations prescribed under this section so that such rates are consistent with the rates applicable under section 483 of this title by reason of the amendments made by Pub. L. 98–369, see section 44(b)(2) of Pub. L. 98–369, set out as an Effective Date note under section 1271 of this title.
Savings Provision
For provisions that nothing in amendment by Pub. L. 115–141 be construed to affect treatment of certain transactions occurring, property acquired, or items of income, loss, deduction, or credit taken into account prior to Mar. 23, 2018, for purposes of determining liability for tax for periods ending after Mar. 23, 2018, see section 401(e) of Pub. L. 115–141, set out as a note under section 23 of this title.
Study of Application and Administration of This Section
Pub. L. 101–508, title XI, § 11316, Nov. 5, 1990, 104 Stat. 1388–458, directed Secretary of the Treasury or his delegate to conduct a study of the application and administration of section 482 of the Internal Revenue Code of 1986 and not later than Mar. 1, 1992, submit to Committee on Ways and Means of House of Representatives and Committee on Finance of Senate a report on the study, together with such recommendations as he deemed advisable.