SECTION 10. AFSI ADJUSTMENT

WITH RESPECT TO TRANSACTIONS INVOLVING INTANGIBLE PROPERTY SUBJECT TO SECTION 367(d)

.01 Purpose . The Treasury Department and the IRS anticipate that the forthcom

March 9, 2026 652 Bulletin No. 2026–11

ing proposed regulations will address certain CAMT consequences of transactions involving intangible property subject to § 367(d) consistent with the guidance described in this section 10.

.02 AFSI adjustment for transactions involving the transfer of intangible prop- erty subject to § 367(d) .

(1) Shareholder-level adjustment . A CAMT entity that is required to include an amount in gross income under § 367(d) for regular tax purposes for a taxable year increases its AFSI for such year by such amount. If regular tax basis is relevant in determining an amount included in gross income under § 367(d), CAMT basis is substituted for regular tax basis in determining the amount included in AFSI. This would be the case, for example, if an election is made under § 1.367(d)-1(g)(2) or 1.367(d)-1T(g)(2) to treat a transfer of intangible property to a foreign corporation as a sale, or if there is a disposition of the intangible property by the foreign corporation described in § 1.367(d)-1(f) (4)(i)(A).

(2) Foreign corporation-level adjust- ment . A foreign corporation that properly treats a deemed payment as an allowable deduction under § 1.367(d)-1(c)(2)(ii) or (e)(2)(ii) or reduces its gross income under § 1.367(d)-1(f)(2)(i) for regular tax purposes for a taxable year reduces its adjusted net income or loss (or AFSI, if the foreign corporation is an applicable corporation and the deduction or reduction reduces income described in § 882(b)) for such year by the amount of the deemed payment or the amount of the reduction in gross income. The preceding sentence applies only to the extent such amounts increase the AFSI of a CAMT entity under proposed § 1.56A-4 as described in this section 10.