Page:United States Statutes at Large Volume 100 Part 3.djvu/442

 100 STAT. 2250 f.

PUBLIC LAW 99-514—OCT. 22, 1986 (1) IN GENERAL.—The amendments made by subsection (a) shall apply to dividends received or accrued after December 31, 1986, in taxable years ending after such date. (2) AMENDMENT RELATING TO LIMITATION ON DEDUCTIONS.—

The amendment made by subsection (a) to section 246(b) of the Internal Revenue Code of 1986 shall apply to taxable years beginning after December 31, 1986. SEC. 612. REPEAL OF PARTIAL EXCLUSION OF DIVIDENDS RECEIVED BY INDIVIDUALS. (a) GENERAL RULE.—Section 116 (relating to partial exclusion of

dividends received by individuals) is hereby repealed. (b) TECHNICAL AMENDMENTS.—

(1) Subsection (g) of section 301 is amended by striking out paragraph (4). (2)(A) Subsection (c) of section 584 is amended to read as follows: "(c) INCOME OF PARTICIPANTS IN FUND.—Each participant in the common trust fund in computing its taxable income shall include, whether or not distributed and whether or not distributable— "(1) as part of its gains and losses from sales or exchanges of capital assets held for not more than 6 months, its proportionate share of the gains and losses of the common trust fund from sales or exchanges of capital assets held for not more than 6 months, "(2) as part of its gains and losses from sales or exchanges of capital assets held for more than 6 months, its proportionate share of the gains and losses of the common trust fund from sales or exchanges of capital assets held for more than 6 months, and "(3) its proportionate share of the ordinary taxable income or the ordinary net loss of the common trust fund, computed as provided in subsection (d)." (B) If the amendments made by section 1001 of the Tax Reform Act of 1984 cease to apply, effective with respect to property to which such amendments do not apply, subsection (c) of section 584 is amended by striking out "6 months" each place it appears and inserting in lieu thereof "1 year". (3) Section 642 is amended by striking out subsection (j). (4) Paragraph (7) of section 643(a) is hereby repealed. (5) Paragraph (5) of section 702(a) is amended to read as follows: "(5) dividends with respect to which there is a deduction under part VIII of subchapter B,". (6) Section 854 is amended— (A) by striking out "section 116 (relating to a n exclusion %m0 fQj. dividends received by individuals), and " in subsection ,, (a), ^"^ (B) in subsection (b)— (i) by striking o u t subparagraph (B) of paragraph (1) srSisTj^t ^^^ redesignating subparagraph (C) a s subparagraph "'" ' j^ G-. t-i*,»

(ii) by striking o u t "or (B)" in subparagraph (B) (as so redesignated), (iii) by striking out " the exclusion under section 116 and " in paragraph (2), and

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