Internal Revenue Code · 26 U.S.C.
§ 989. Other definitions and special rules
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. § 989
At a glance
Read from the text, the source credit and the official notes. Not part of the law.
- Status
- In force
- Added
- October 22, 1986 by Pub. L. 99–514
- Last amended
- October 22, 2004 by Pub. L. 108–357
- Amendments
- 5 dated changes in the source credit
- Length
- 3 subsections · 423 words · about 2 min to read
- Defines
- 2 terms
- Cross-references
- cites 3; cited by 5 Code sections and 23 other regulations
- Regulations
- 2 issued under this section
For purposes of this subpart, the term “qualified business unit” means any separate and clearly identified unit of a trade or business of a taxpayer which maintains separate books and records.
(Added Pub. L. 99–514, title XII, § 1261(a), Oct. 22, 1986, 100 Stat. 2590; amended Pub. L. 100–647, title I, § 1012(v)(5), Nov. 10, 1988, 102 Stat. 3529; Pub. L. 103–66, title XIII, § 13231(c)(4)(C), Aug. 10, 1993, 107 Stat. 499; Pub. L. 104–188, title I, § 1501(b)(9), Aug. 20, 1996, 110 Stat. 1826; Pub. L. 105–34, title XI, § 1102(b)(2), (3), Aug. 5, 1997, 111 Stat. 966; Pub. L. 108–357, title IV, § 413(c)(17), Oct. 22, 2004, 118 Stat. 1508.)
Terms defined here
Where the text says “the term … means”. Select a term to jump to its definition.
Regulations under this section
Treasury regulations (26 CFR) issued under § 989
Cross-references
Computed from the citations in the text of Title 26 and 26 CFR.
This section cites 3 other sections
- § 1248 Gain from certain sales or exchanges of stock in certain foreign corporations
- § 951(a)(1)(A) Amounts included in gross income of United States shareholders
- § 905(c) Applicable rules
Cited by 5 Code sections
- § 856(c)(5)(K) Definition of real estate investment trust
- § 904(d)(2)(J)(i) Limitation on credit
- § 953(e)(4) Insurance income
- § 954(c)(2)(C)(ii) Foreign base company income
- § 7701(a)(51)(C)(iv) Definitions
Cited in 23 regulations not issued under it
- § 1.367(b)-2 Definitions and special rules.
- § 1.367(b)-7 Carryover of earnings and profits and foreign income taxes in certain foreign-to-foreign nonrecognition transactions.
- § 1.367(b)-9 Special rule for F reorganizations and similar transactions.
- § 1.385-3 Certain distributions of debt instruments and similar transactions.
- § 1.446-3 Notional principal contracts.
- § 1.861-9 Allocation and apportionment of interest expense and rules for asset-based apportionment.
- § 1.863-7 Allocation of income attributable to certain notional principal contracts under section 863(a).
- § 1.863-10 Source of income from a qualified fails charge.
- § 1.865-2 Loss with respect to stock.
- § 1.884-1 Branch profits tax.
- § 1.904-4 Separate application of section 904 with respect to certain categories of income.
- § 1.905-3 Adjustments to U.S. tax liability and to current earnings and profits as a result of a foreign tax redetermination.
- § 1.954-1 Foreign base company income.
- § 1.954-2 Foreign personal holding company income.
- § 1.985-1 Functional currency.
- § 1.985-2 Election to use the United States dollar as the functional currency of a QBU.
- § 1.985-3 United States dollar approximate separate transactions method.
- § 1.985-7 Adjustments required in connection with a change to DASTM.
- § 1.986(a)-1 Translation of foreign income taxes for purposes of the foreign tax credit.
- § 1.987-7 Application of the section 987 regulations to partnerships and S corporations.
- § 1.988-1 Certain definitions and special rules.
- § 1.1503(d)-5 Attribution of items and basis adjustments.
- § 4.954-1 Foreign base company income; taxable years beginning after December 31, 1986.
Amendment history
From the source credit and the official notes, newest first.
Where it sits in the Code
- Subtitle A Income Taxes
- Chapter 1 NORMAL TAXES AND SURTAXES
- Subchapter N Tax Based on Income From Sources Within or Without the United States
- Part III INCOME FROM SOURCES WITHOUT THE UNITED STATES
- Subpart J Foreign Currency Transactions
Nearby sections
Official notes
Show the Law Revision Counsel's notes (amendments, effective dates)
Editorial Notes
References in Text
The enactment of this subpart, referred to in subsec. (c)(1), probably means the date of enactment of Pub. L. 99–514, which was approved Oct. 22, 1986.
Amendments
2004—Subsec. (b)(3). Pub. L. 108–357 struck out “, 551(a),” after “section 951(a)(1)(A)”.
1997—Subsec. (b)(3), (4). Pub. L. 105–34, § 1102(b)(3), struck out “weighted” before “average exchange rate”.
Subsec. (c)(6). Pub. L. 105–34, § 1102(b)(2), added par. (6).
1996—Subsec. (b). Pub. L. 104–188 substituted “section 951(a)(1)(B)” for “subparagraph (B) or (C) of section 951(a)(1)” in closing provisions.
1993—Subsec. (b). Pub. L. 103–66 substituted “subparagraph (B) or (C) of section 951(a)(1)” for “section 951(a)(1)(B)” in last sentence.
1988—Subsec. (b). Pub. L. 100–647 substituted in par. (3) “section 951(a)(1)(A)” for “section 951(a)” and inserted at end “For purposes of the preceding sentence, any amount included in income under section 951(a)(1)(B) shall be treated as an actual distribution made on the last day of the taxable year for which such amount was so included.”
Statutory Notes and Related Subsidiaries
Effective Date of 2004 Amendment
Amendment by Pub. L. 108–357 applicable to taxable years of foreign corporations beginning after Dec. 31, 2004, and to taxable years of United States shareholders with or within which such taxable years of foreign corporations end, see section 413(d)(1) of Pub. L. 108–357, set out as an Effective and Termination Dates of 2004 Amendments note under section 1 of this title.
Effective Date of 1997 Amendment
Amendment by Pub. L. 105–34 applicable to taxes paid or accrued in taxable years beginning after Dec. 31, 1997, see section 1102(c)(1) of Pub. L. 105–34, set out as a note under section 986 of this title.
Effective Date of 1996 Amendment
Amendment by Pub. L. 104–188 applicable to taxable years of foreign corporations beginning after Dec. 31, 1996, and to taxable years of United States shareholders within which or with which such taxable years of foreign corporations end, see section 1501(d) of Pub. L. 104–188, set out as a note under section 904 of this title.
Effective Date of 1993 Amendment
Amendment by Pub. L. 103–66 applicable to taxable years of foreign corporations beginning after Sept. 30, 1993, and to taxable years of United States shareholders in which or with which such taxable years of foreign corporations end, see section 13231(e) of Pub. L. 103–66, set out as a note under section 951 of this title.
Effective Date of 1988 Amendment
Amendment by Pub. L. 100–647 effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, Pub. L. 99–514, to which such amendment relates, see section 1019(a) of Pub. L. 100–647, set out as a note under section 1 of this title.
Effective Date
Section applicable to taxable years beginning after Dec. 31, 1986, with certain exceptions and qualifications, see section 1261(e) of Pub. L. 99–514, set out as a note under section 985 of this title.