Section 987 explained: Taxation of foreign gains and losses

Section 987 explained: Taxation of foreign gains and losses

The Treasury and IRS have hinted that the much-anticipated section 987 regulations may roll out sooner rather than later. Once enacted, these rules could significantly change how businesses handle foreign currency gains and losses and clear up looming questions surrounding complex international transactions. Deloitte International Tax practice specialists Aziza Yuldasheva and Michael Mou discuss the expected changes to the taxation of foreign currency transactions and the necessary preparations that all tax professionals should consider:

Taxpayers can continue to use their current calculation method as long as it’s reasonable, until these regulations become final and effective, but they also have the choice of adopting the proposed regs now, which will allow them to postpone the final regs by another year.                                                                                                                                                                                                                                                 —Aziza Yuldasheva

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