Section 988

A section 988 transaction relates to section 988 c 1 of the.

Section 988. Use form 8886 to disclose information for each reportable transaction in which participation has occurred. Irc section 988 is a tax regulation governing capital losses or gains on investments held in a foreign nonfunctional currency. A 988 transaction is a transaction described in section 988 c 1 of the internal revenue code in the united states of america.

988 c 1 a i is denominated in terms of a nonfunctional currency or i r c. A in generalthe term section 988 transaction means any transaction described in subparagraph b if the amount which the taxpayer is entitled to receive or is required to pay by reason of such transaction. Each taxpayer that has participated in a reportable transaction and that is required to file a tax return must disclose information for each reportable transaction in which the taxpayer participates.

This transaction occurs when a taxpayer enters into or acquires any debt instrument forward contract futures contract option or similar financial instrument held in a non functional currency. The term section 988 transaction means any transaction described in subparagraph b if the amount which the taxpayer is entitled to receive or is required to pay by reason of such transaction i r c.