Page:United States Statutes at Large Volume 100 Part 3.djvu/989

 PUBLIC LAW 99-514—OCT. 22, 1986

100 STAT. 2797

"(B) the accrued market discount on such bond determined as of the time such coupon or bond was disposed of (to the extent such discount has not theretofore been included in such person's gross income),". (ii) Paragraph (2) of section 1286(b) is amended by striking out "the amount of the accrued interest described in paragraph (1)" and inserting in lieu thereof "the amount included in gross income under paragraph (1)". (C) EFFECTIVE DATE.—The amendments made by this paragraph shall apply to obligations acquired after the date of the enactment of this Act. (14) CLERICAL AMENDMENTS.—

(A) Subparagraph (A) of section 1274(c)(4) is amended by striking out "FOR LESS THAN $1,000,000" in the subpara-

i

graph heading and inserting in lieu thereof "FOR $1,000,000 OR LESS".

(B) Paragraph (1) of section 483(d) is amended by striking out "any debt instrument to which section 1272 applies" and inserting in lieu thereof "any debt instrument for which an issue price is determined under section 1273(b) (other than paragraph (4) thereof) or section 1274". (C) Clause (iii) of section 6049(b)(5)(B) is amended by striking out "section 1232(b)(l)" and inserting in lieu thereof "section 1273(a)". (b) AMENDMENTS RELATED TO SECTION 44 OF THE ACT.— (1) CLARIFICATION OF TRANSITIONAL RULE FOR PURPOSES OF IMPUTED INTEREST RULES.—Paragraph (4) of section 44(b) of the

Tax Reform Act of 1984 (relating to special rules for sales before July 1, 1985), as added by section 2 of Public Law 98-612, is amended— (A) by striking out "before July 1, 1985" in subparagraph (A) and inserting in lieu thereof " ^ t e r December 31, 1984, and before July 1, 1985", (B) by striking out "BEFORE JULY i, 1985" in the paragraph heading and inserting in lieu thereof "AFTER DECEM•'i

BER 31, 1984, AND BEFORE JULY 1, 1985", and

(C) by adding at the end thereof the following new subparagraph: "(G) CLARIFICATION OF APPLICATION OF THIS PARAGRAPH,

ETC.—This paragraph and paragraphs (5), (6), and (7) shall apply only in the case of sales or exchanges to which section 1274 or 483 of the Internal Revenue Code of 1954 (as amended by section 41) applies." (2) CLARIFICATION OF INTEREST ACCRUAL, ETC.—Subparagraph

(A) of section 44(b)(3) of the Tax Reform Act of 1984 is amended by striking out "and before January 1, 1985," each place it appears. (3) EXCEPTION FOR BINDING CONTRACTS.—Subparagraph (B) of

section 44(b)(3) of the Tax Reform Act of 1984 is amended to read as follows: "(B) EXCEPTION FOR BINDING CONTRACTS.—

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"(i) Subparagraph (A)(i)(1) shall not apply to any sale or exchange pursuant to a written contract which was binding on March 1, 1984, and at all times thereafter before the sale or exchange.

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