Page:United States Statutes at Large Volume 100 Part 3.djvu/1096

 100 STAT. 2904

PUBLIC LAW 99-514—OCT. 22, 1986

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"(vi) the real property is held by a partnership (which does not fail to meet the requirements of clauses (i) through (v)), and— "(I) any partner of the partnership is not a qualified organization, and "(II) the principal purpose of any allocation to any partner of the partnership which is a qualified organization which is not a qualified allocation (within the meaning of section 1680*)(9)) is the avoidance of income tax. For purposes of subclause (I) of clause (vi), an organization shall not be treated as a qualified organization if any income of such organization would be unrelated business taxable income (determined without regard to this paragraph. For purposes of clause (vi), an interest in a mortgage shall in no event be treated as real property."

(f) AMENDMENTS RELATED TO SECTION 1041 OF THE ACT.—

(1) The subsection (j) of section 51 (relating to targeted jobs credit) added by section 1041 of the Tax Reform Act of 1984 is hereby redesignated as subsection (k). (2) Subparagraph (B) of section 1041(c)(5) of the Tax Reform Act of 1984 is amended by striking out "section 51(j)" and inserting in lieu thereof "section 51(k)". (g) AMENDMENT RELATED TO SECTION 1053 OF THE ACT.—Para-

graph (2) of section 1034(h) (relating to members of armed forces) is amended by striking out "before the last day described" and inserting in lieu thereof "before the day which is 1 year after the last day described". (h) AMENDMENT RELATED TO SECTION 1063 OF THE ACT.—Subsec-

tion (c) of section 1063 of the Tax Reform Act of 1984 (relating to permanent disallowance of deduction for expenses of demolition of certain structures) is amended to read as follows: "(c) EFFECTIVE DATES.—

"(1) The amendments made by this section shall apply to taxable years ending after December 31, 1983, but shall not apply to any demolition (other than of a certified historic structure) commencing before July 19, 1984. "(2) For purposes of paragraph (1), if a demolition is delayed until the completion of the replacement structure on the same site, the demolition shall be treated as commencing when construction of the replacement structure commences. "(3) The amendments made by this section shall not apply to any demolition commencing before September 1, 1984, pursuant to a bank headquarters building project if— "(A) on April 1, 1984, a corporation was retained to advise the bank on the final completion of the project, and "(B) on June 12, 1984, the Comptroller of the Currency approved the project. "(4) The amendments made by this section shall not apply to the remaining adjusted basis at the time of demolition of any structure if— "(A) such structure was used in the manufacture, storage, or distribution of lead alkyl antiknock products and intermediate and related products at facilities located in or near Baton Rouge, Louisiana, and Houston, Texas, owned by the same corporation, and

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