Page:United States Statutes at Large Volume 100 Part 3.djvu/465

 PUBLIC LAW 99-514—OCT. 22, 1986

100 STAT. 2273

(A) Subsection (e) of section 1248 is amended by striking out "Under regulations" and inserting in lieu thereof "Except as provided in regulations". (B) Subsection (f) of section 1248 is amended by inserting "Except as provided in regulations prescribed by the Secretary—" after the subsection heading. (e) TECHNICAL AND CONFORMING AMENDMENTS.—

(1) Paragraph (4) of section 312(n) (as redesignated by title XVIII) is amended to read as follows: "(4) LIFO INVENTORY ADJUSTMENTS.— "(A) IN GENERAL.—Earnings and profits shall be increased or decreased by the amount of any increase or decrease in the LIFO recapture amount as of the close of each taxable year; except that any decrease below the LIFO recapture amount as of the close of the taxable year preceding the 1st taxable year to which this paragraph applies to the taxpayer shall be taken into account only to the extent provided in regulations prescribed by the Secretary. "(B) LIFO RECAPTURE AMOUNT.—For purposes of this paragraph, the term 'LIFO recapture amount' means the amount (if any) by which— "(i) the inventory amount of the inventory assets under the first-in, first-out method authorized by section 471, exceeds "(ii) the inventory amount of such assets under the LIFO method. "(C) DEFINITIONS.—For purposes of this paragraph— ' ' ''- •-' "(i) LIFO METHOD.—The term 'LIFO method' means the method authorized by section 472 (relating to lastin, first-out inventories). "(ii) INVENTORY ASSETS.—The term 'inventory assets' means stock in trade of the corporation, or other property of a kind which would properly be included in the inventory of the corporation if on hand at the close of the taxable year. "(iii) INVENTORY AMOUNT.—The inventory amount of assets under the first-in, first-out method authorized by section 471 shall be determined— ' "(I) if the corporation uses the retail method of valuing inventories under section 472, by using such method, or "(II) if subclause (I) does not apply, by using cost or market, whichever is lower." (2) Subsection (c) of section 332 is hereby repealed. (3) Section 333 is hereby repealed. (4)(A) Subsection (a) of section 334 is amended by striking out "(other than a distribution to which section 333 applies)". (B) Subsection (c) of section 334 is hereby repealed. (5) Paragraph (12) of section 338(h) is hereby repealed. (6)(A) Subsection (e) of section 341 is amended by striking out paragraphs (2), (3), and (4). (B) Paragraph (5) of section 341(e) is amended— (i) by striking out "paragraphs (1), (2), and (4)" and insert* ing in lieu thereof "paragraph (1)", and (ii) by striking out subparagraph (B). (7) Subsection (b) of section 346 is amended by striking out

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