Disregarded transactions
Disregarded transactions An asset or liability shall be treated as transferred to a section 987 QBU from its owner (whether direct owner or indirect owner, as defined in 1.9871(b)(4)) if, as a result of a disregarded transaction (as defined inparagraph (c)(2)(ii)of this section), such asset or liability is reflected on the books and records of the section 987 QBU within the meaning ofparagraph (b)of this section. Similarly, an asset or liability shall be treated as transferred from a section 987 QBU to its owner if, as a result of a disregarded transaction, such asset or liability is no longer reflected on the books and records of the section 987 QBU within the meaning ofparagraph (b)of this section.