Page:United States Statutes at Large Volume 100 Part 3.djvu/977

 PUBLIC LAW 99-514—OCT. 22, 1986

100 STAT. 2785

Subtitle A—Amendments Related to the Tax Reform Act of 1984 CHAPTER 1—AMENDMENTS RELATED TO TITLE I OF THE ACT SEC. 1801. AMENDMENTS RELATED TO DEFERRAL OF CERTAIN TAX REDUCTIONS. (a) AMENDMENTS RELATED TO SECTION 12 OF THE ACT.— (1) ELECTION OUT OF TRANSITIONAL RULES.—Paragraph (1) of

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section 12(c) of the Tax Reform Act of 1984 (relating to finance lease provisions) is amended by adding at the end thereof the following new sentence: "The preceding sentence shall not apply to any property with respect to which an election is made under this sentence at such time after the date of the enactment of the Tax Reform Act of 1986 as the Secretary of the Treasury or his delegate may prescribe." (2) TREATMENT OF CERTAIN FARM FINANCE LEASES.— (A) IN GENERAL.—If—

(i) any partnership or grantor trust is the lessor under a specified agreement, (ii) such partnership or grantor trust met the requirements of section 168(f)(8)(C)(i) of the Internal Revenue Code of 1954 (relating to special rules for finance lesises) when the agreement was entered into, and (iii) a person other than a C corporation became a partner in such partnership (or a beneficiary in such trust) before September 26, 1985, then, for purposes of applying the revenue laws of the United States in respect to such agreement, the portion of the property allocable to partners (or beneficiaries) not described in clause (iii) shall be treated as if it were subject to a separate agreement and the portion of such property allocable to the partner or beneficiary described in clause J (iii) shall be treated as if it were subject to a separate agreement. (B) SPECIFIED AGREEMENT.—For purposes of subparagraph ^ (A), the term "specified agreement" means an agreement to which subparagraph (B) of section 209(d) of the Tax Equity and Fiscal Responsibility Act of 1982 applies which is— (i) an agreement dated as of December 20, 1982, as amended and restated as of February 1, 1983, involving approximately $8,734,000 of property at December 31, 1983, (ii) an agreement dated as of December 15, 1983, as pv,. ^ *' I amended and restated as of January 3, 1984, involving approximately $13,199,000 of property at December 31, 1984, or (iii) an agreement dated as of October 25, 1984, as amended and restated as of December 1, 1984, involving approximately $966,000 of property at December 31, 1984. Qy) AMENDMENT RELATED TO SECTION 26 OF THE ACT.—Paragraph

(2) of section 42510)) (relating to rate of tax on communications

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