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factor test to specific classes of income. Sec. 1.864-6(b)(2),
Income Tax Regs. For dividends or interest, or gains or losses
from the sale or exchange of certain stocks or securities, an
office or other fixed place of business is considered a material
factor in the realization of such income, gain, or loss:
if the office or other fixed place of business either
actively participates in soliciting, negotiating, or
performing other activities required to arrange, the
issue, acquisition, sale, or exchange, of the asset
from which such income, gain, or loss is derived or
performs significant services incident to such issue,
acquisition, sale, or exchange. * * * [Sec. 1.864-
6(b)(2)(ii), Income Tax Regs.]
An office or other fixed place of business in the United States
is not considered to be a material factor in the realization of
income, gain, or loss:
merely because the office or other fixed place of
business conducts one or more of the following
activities: (1) collects or accounts for the
dividends, interest, gains, or losses, (2) exercises
general supervision over the activities of the persons
directly responsible for carrying on the activities or
services described in the immediately preceding
sentence, (3) performs merely clerical functions
incident to the issue, acquisition, sale, or exchange,
or (4) exercises final approval over the execution of
the issue, acquisition, sale, or exchange. * * * [Sec.
1.864-6(b)(2)(ii)(a), Income Tax Regs.]
The third rule in pertinent part is that "the income, gain,
or loss which shall be attributable to an office or other fixed
place of business within the United States shall be the income,
gain, or loss properly allocable thereto." Sec. 864(c)(5)(C).
The regulation thereunder provides no definition of the term
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