Page:United States Statutes at Large Volume 100 Part 3.djvu/849

 PUBLIC LAW 99-514—OCT. 22, 1986

100 STAT. 2657

(i) AMENDMENT TO OUTPUT REGULATIONS.—The Secretary of the

Treasury or his delegate shall amend the provision in the Federal income tax regulations relating to when use pursuant to certain output contracts is considered to satisfy the private business tests of paragraphs (1) and (2) of section 141(b) of the Internal Revenue Code of 1986 to eliminate the requirement of a 3 percent guaranteed minimum payment. (j) TECHNICAL AND CONFORMING AMENDMENTS.— (1) REPEAL OF SECTION 103A.—Section 103A is hereby repealed. (2) SECTION 1 4 3 REDESIGNATED AS SECTION 7703.— •:> (A) IN GENERAL.—Chapter 79 (relating to definitions) is

amended by adding at the end thereof the following new section: "SEC. 7703. DETERMINATION OF MARITAL STATUS.

"(a) GENERAL RULE.—For purposes of part V of subchapter B of chapter 1 and those provisions of this title which refer to this subsection— "(1) the determination of whether an individual is married shall be made as of the close of his taxable year; except that if his spouse dies during his taxable year such determination shall be made as of the time of such death; and "(2) an individual legally separated from his spouse under a decree of divorce or of separate maintenance shall not be considered as married. "(b) CERTAIN MARRIED INDIVIDUALS LIVING APART.—For purposes

of those provisions of this title which refer to this subsection, if— "(1) an individual who is married (within the meaning of subsection (a)) and who files a separate return maintains as his home a household which constitutes for more than one-half of the taxable year the principal place of abode of a child (within the meaning of section 151(e)(3)) with respect to whom such individual is entitled to a deduction for the taxable year under section 151 (or would be so entitled but for paragraph (2) or (4) of section 152(e)), "(2) such individual furnishes over one-half of the cost of maintaining such household during the taxable year, and "(3) during the last 6 months of the taxable year, such individual's spouse is not a member of such household, such individual shall not be considered as married." (B) CLERICAL AMENDMENT.—The table of sections for chap: ter 79 is amended by adding at the end thereof the following new item: "Sec. 7703. Determination of marital status."

(3) Paragraph (3) of section 163(0 (relating to denial of deductions for interest on certain obligations not in registered form) is amended by striking out "section 103(j)(3)" and inserting in lieu thereof "section 149(a)(3)". (4) Sections 269A(b)(3)", 414(m)(5), 414(n)(6), and 4988(c)(2) (defining related person) are each amended by striking out "section 103(b)(6)(C)" and inserting in lieu thereof "section 144(a)(3)". (5) Paragraph (1) of section 4701(b) (defining registrationrequired obligation) is amended by striking out "section 103(j)" and inserting in lieu thereof "section 149(a)".

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