Page:United States Statutes at Large Volume 100 Part 3.djvu/524

 100 STAT. 2332

PUBLIC LAW 99-514—OCT. 22, 1986 "(i) IN GENERAL.—The adjustments provided in section 312(n) shall apply; except that— "(I) paragraphs (1), (2), and (3) shall apply only to amounts paid or incurred in taxable years beginning after December 31, 1989, "(II) paragraph (4) shall apply only to taxable years beginning after December 31, 1989, "(III) paragraph (5) shall apply only to installment sales in taxable years beginning after December 31, 1989, "(IV) paragraph (6) shall apply only to contracts entered into on or after March 1, 1986, and "(V) paragraphs (7) and (8) shall not apply. "(ii) SPECIAL RULE FOR INTANGIBLE DRILLING COSTS AND MINERAL EXPLORATION AND DEVELOPMENT COSTS.—

If— "(I) the present value of the deductions provided under subparagraph (A)(ii) or (B)(ii) of section 312(n)(2) with respect to amounts paid or incurred in taxable years beginning after December 31, 1989, exceeds "(II) the present value of the deductions for such amounts under the method used for book purposes, such amounts shall be deductible under the method used for book purposes in lieu of that provided in such subparagraph. "(E)

DISALLOWANCE OF LOSS ON EXCHANGE OF DEBT

POOLS.—No loss shall be recognized on the exchange of any pool of debt obligations for another pool of debt obligations having substantially the same effective interest rates and maturities. "(F)

ACQUISITION EXPENSES OF U F E INSURANCE COMPA-

NIES.—Acquisition expenses of life insurance companies shall be capitalized and amortized in accordance with the treatment generally required under generally accepted accounting principles as if this subparagraph applied to all taxable years. "(G) DEPLETION.—The allowances for depletion with respect to any property placed in service in a taxable year beginning after 1989, shall be determined under whichever of the following methods yields deductions with a smaller present value: "(i) cost depletion determined under section 611, or "(ii) the method used for book purposes. "(H) TREATMENT OF CERTAIN OWNERSHIP CHANGES.—If—

"(i) there is an ownership change (within the meaning of section 382) after the date of the enactment of the Tax Reform Act of 1986 with respect to any corporation, and "(iiXD the aggregate adjusted bases of the assets of such corporation (immediately after the change), exceed "(II) the value of the stock of such corporation (as determined for purposes of section 382), properly adjusted for liabilities and other relevant items, then the adjusted basis of each asset of such corporation (as of such time) shall be its proportionate share (determined

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