E&P deficit foreign corporation

(3) Definitions related to E&P deficits For purposes of this subsection— (A) Aggregate foreign E&P deficit (i) In general The term “aggregate foreign E&P deficit” means, with respect to any United States shareholder, the lesser of— (I) the aggregate of such shareholder’s pro rata shares of the specified E&P deficits of the E&P deficit foreign corporations of such shareholder, or (II) the amount determined under paragraph (2)(B). (ii) Allocation of deficit If the amount described in clause (i)(II) is less than the amount described in clause (i)(I), then the shareholder shall designate, in such form and manner as the Secretary determines— (I) the amount of the specified E&P deficit which is to be taken into account for each E&P deficit corporation with respect to the taxpayer, and (II) in the case of an E&P deficit corporation which has a qualified deficit (as defined in section 952), the portion (if any) of the deficit taken into account under subclause (I) which is attributable to a qualified deficit, including the qualified activities to which such portion is attributable. (B) E&P deficit foreign corporation The term “E&P deficit foreign corporation” means, with respect to any taxpayer, any specified foreign corporation with respect to which such taxpayer is a United States shareholder, if, as of November 2, 2017 — (i) such specified foreign corporation has a deficit in post-1986 earnings and profits, (ii) such corporation was a specified foreign corporation, and (iii) such taxpayer was a United States shareholder of such corporation. (C) Specified E&P deficit The term “specified E&P deficit” means, with respect to any E&P deficit foreign corporation, the amount of the deficit referred to in subparagraph (B).

Source

26 USC § 965(b)(3)


Scoping language

None identified. Default scope is assumed to be the entire title.
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