Page:United States Statutes at Large Volume 100 Part 3.djvu/562

 100 STAT. 2370

PUBLIC LAW 99-514—OCT. 22, 1986 in various stages with final payment due on August 31, 1992. This paragraph shall also apply to indebtedness which replaces indebtedness described in this paragraph if such indebtedness does not exceed the amount and maturity of the indebtedness it replaces. (4) SPECIAL RULE FOR RESIDENTIAL CONDOMINIUM PROJECT.—

For purposes of applying the amendments made by this section, the term applicable installment obligation (within the meaning of section 453C(e)(l) of the Internal Revenue Code of 1986) shall not include any obligation arising in connection with sales from a residential condominium project— (A) for which a contract to purchase land for the project was entered into at least 5 years before the date of the enactment of this Act, (B) with respect to which land for the project was purchased before September 26, 1985, (C) with respect to which building permits for the project were obtained, and construction commenced, before September 26, 1985, (D) in conjunction with which not less than 80 units of low-income housing are deeded to a tax-exempt organization designated by a local government, and (E) with respect to which at legist $1,000,000 of expenses were incurred before September 26, 1985. (D) the portion of the net adjustment taken into account in the 1st taxable year of the taxpayer ending after December 31, 1986, shall not exceed 15 percent of such adjustment, and (E) the remaining portion of such adjustment shall be taken into account ratably in the 2nd, 3rd, and 4th years ending after December 31, 1986. (5) SPECIAL RULE FOR QUALIFIED BUYOUT.—The amendments made by this section shall apply for taxable years ending after December 31, 1991, to a corporation if— (A) such corporation was incorporated on May 25, 1984, for the purpose of acquiring all of the stock of another corporation, (B) such acquisition took place on October 23, 1985, (C) in connection with such acquisition, the corporation incurred indebtedness of approximately $151,000,000, and (D) substantially all of the stock of the corporation is owned directly or indirectly by employees of the corporation the stock of which was acquired on October 23, 1985. (6) SPECIAL RULE FOR SALES OF REAL PROPERTY BY DEALERS.—In

the case of installment obligations arising from the sale of real property in the ordinary course of the trade or business of the taxpayer, any gain attributable to allocable installment indebtedness allocated to any such installment obligations which arise (or are deemed to arise)— (A) in the 1st taxable year of the taxpayer ending after December 31, 1986, shall be taken into account ratably over the 3 taxable years beginning with such 1st taxable year, and (B) in the 2nd taxable year of the taxpayer ending after December 31, 1986, shall be taken into account ratably over the 2 taxable years beginning with such 2nd taxable year.

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