31 August 2026 Americas Tax Roundup | 31 August 2026 | | | | A summary of the top weekly tax developments in the Americas | | | | | | | | | | | | | EY US offices are closed 4 September to 7 September. The next Americas Tax Roundup will be published on 14 September. This week's tax news from the Americas - United States | Proposed regulations address scope of new exclusion from FDDEI for ‘excluded property sales income’
The U.S. Treasury and the IRS issued proposed regulations (REG-117130-25) on August 20, 2026, addressing a new category of "excluded property sales income" created by the One Big Beautiful Bill Act. Income in this category would not qualify as foreign-derived deduction eligible income (FDDEI) and therefore would be ineligible for the IRC Section 250 deduction. The exclusion applies to income or gain from the sale of (i) intangible property and (ii) property subject to depreciation, amortization, or depletion by the seller. The proposed regulations provide additional guidance on the scope of these excluded income categories.
- United States | Proposed regulations under IRC Section 987 would permit an election under which CFCs generally would not compute or recognize IRC Section 987(3) gain or loss
On 13 August 2026, the U.S. Treasury and the IRS proposed regulations (REG-103844-26) under IRC Section 987 that would permit controlled foreign corporations (CFCs) to elect out of rules requiring them to compute or recognize IRC Section 987 gain or loss from remittances or the termination of their IRC Section 987 qualified business units (QBUs). The income determination and translation rules under IRC Section 987(1) and (2) would continue to apply. Taxpayers generally may rely on the proposed regulations for tax years beginning after 31 December 2024, provided applicable consistency requirements are satisfied. The proposed regulations are generally expected to reduce the compliance burden associated with the 2024 final IRC Section 987 regulations for many multinational groups. Taxpayers considering the election, however, should carefully evaluate the treatment of existing IRC Section 987 gain and loss positions (including any corresponding impact to the foreign tax credit), the consequences of future inbound restructurings, interactions with other tax return positions and elections, and potential issues arising in future M&A transactions involving CFCs with IRC Section 987 QBUs.
- Canada | Distributed investment plans must request certain investor information by 15 October 2026
By 15 October 2026, distributed investment plans (DIPs) in Canada that are selected listed financial institutions (SLFIs) must make a written request to obtain certain information from their investors for purposes of calculating the DIP's provincial attribution percentage and Goods and Services Tax (GST)/Harmonized Sales Tax (HST)/Quebec Sales Tax (QST) net tax liability/refund. The information generally relates to investor residency, investor percentage and units held in each series as of 30 September 2026, depending on the investor type; qualifying investors must provide the required information voluntarily by 15 November 2026. Businesses operating as DIPs, including mutual fund trusts and investment limited partnerships (including foreign partnerships with Canadian investors), and that are SLFIs should identify relevant investors and request the required data on time; otherwise, some investors may be deemed resident in the highest-rate province, potentially increasing GST/HST/QST liabilities or reducing refunds.
- US Customs and Border Protection issues guidance on filing entries as Section 338 duties on certain Canadian goods take effect
On 21 August 2026, US Customs and Border Protection (CPB) issued guidance on filing entries for certain Canada-origin goods subject to additional Section 338 duties, following the suspension of US-Canada negotiations and the end of the temporary suspension that had delayed the duties. The additional duties apply to covered goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern time on 22 August 2026; HTSUS headings 9903.03.12 through 9903.03.14 carry an additional 50% rate, while headings 9903.03.15 and 9903.03.16 carry a 0% rate.
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Comments. If you have any questions or suggestions about this newsletter, please email Tax News Update Help at: ustaxalertshelp@ey.com. | | | | | | | | About Americas Tax Roundup Published by NTD's Tax Technical Knowledge Services Group, Washington, D.C.
Jennifer Mannetta, writer and editor Distributed weekly to all Americas Tax personnel. | | | |
Document ID: 2026-1856 |
