26 CFR 1.706-2T - Temporary regulations; question and answer under the Tax Reform Act of 1984.

Regulations last checked for updates: Feb 06, 2026

Title 26 - Internal Revenue last revised: Jan 15, 2026

View all text of Part 1 [§ 1.641 - § 1.850]

§ 1.706-2T - Temporary regulations; question and answer under the Tax Reform Act of 1984.

Question 1: For purposes of section 706(d), how is an otherwise deductible amount that is deferred under section 267(a)(2) treated?

Answer 1: In the year the deduction is allowed, the deduction will constitute an allocable cash basis item under section 706(d)(2)(B)(iv).

(Secs. 267(f)(2)(B), 706(d)(2)(B)(iv), 1502, and 7805, Internal Revenue Code of 1954 (98 Stat. 704, 26 U.S.C. 267; 98 Stat. 589, 26 U.S.C. 706; 68A Stat. 367, 26 U.S.C. 1502; 68A Stat. 917, 26 U.S.C. 7805)) [T.D. 7991, 49 FR 47001, Nov. 30, 1984]

authority: 26 U.S.C. 7805,unless

source: T.D. 6500, 25 FR 11814, Nov. 26, 1960; 25 FR 14021, Dec. 31, 1960, unless otherwise noted.

cite as: 26 CFR 1.706-2T