Page:United States Statutes at Large Volume 102 Part 4.djvu/486

 102 STAT. 3456

PUBLIC LAW 100-647—NOV. 10, 1988

0') TREATMENT OF ALTERNATIVE MINIMUM TAX WITH RESPECT TO SHAREHOLDERS SURPLUS ACXX)UNT.—

26 USC 815 note.

(1) Paragraph (2) of section 815(c) of the 1986 Code (relating to shareholders surplus account) is amended by adding at the end thereof the following new sentence: "If for any taxable year a tax is imposed by section 55, under r^^ations proper adjustments shall be made for such year and all subsequent taxable years in the amounts taken into account under subparagraphs (A) and (B) of this paragraph and subparagraph (B) of subsection (d)(3)." (2) EFFECTIVE DATE.—The amendment made by paragraph (1) shall apply to taxable years b ^ i n n i i ^ after December 31, 1986. (k) TREATMENT OF CERTAIN ITEMS AS NOT INTEREST FOR SOURCE

RULES, ETC.—Subsection (f) of section 818 of the 1986 0)de is

amended by adding at the end thereof the following new paragraph: "(3) ITEMS DESCRIBED IN SECTION 807(C) TREATED AS NOT INTEREST FOR SOURCE RULES, ETC.—For purposes of part I of

subchapter N, items described in any paragraph of section 807(c) shall be treated as amounts which are not interest." SEC. 1011. AMENDMENTS RELATED TO PARTS I AND II OF SUBTITLE A OF TITLE XI OF THE REFORM ACT. (a) AMENDMENT RELATED TO SECTION 1101 OF THE REFORM ACT.—

(1) Paragraph (4) of section 2 1 ^) of the 1986 Code (relating to special rule for married individuals filing separately) is amended to read as follows: "(4) SPECIAL RULE FOR MARRIED INDIVIDUALS FILING SEPARATELY AND LIVING APART.—A husband and wife who—

26 USC 219 note.

"(A) file separate returns for any taxable year, and "(B) live apart at all times during such taxable year, shall not be treated as married individuals for purposes of this subsection." (2)(A) Except as provided in subparagraph (B), the amendment made by paragraph (1) shall apply to taxable years b a n ning after December 31, 1987. (B) A taxpayer may elect to have the amendment made by paragraph (1) apply to any taxable year beginning in 1987. (b) AMran>MENTS RELATED TO SECTION 1102 OF THE REFORM ACT.— (1) Sections 408(d)(2)(C) and 408(o)(4)(B)(iv) of the 1986 Code are each amended by striking out "with or within which the taxable year ends" and inserting in lieu thereof "in which the taxable year begins". (2)(A) Section 408(d)(4) of the 1986 Code (relating to excess contributions returned before due date of return) is amended by striking out "to the extent that such contribution exceeds the amount allowable as a deduction under section 219". (B) Section 408(d)(4) of the 1986 Code is amended— (i) by striking out "excess" each place it appears, and (ii) by striking out "EXCESS CONTRIBUTIONS" in the heading and inserting in lieu thereof "0)NTRIBUTIONS". (3) Sections 408(d)(5) and 4973(b) of the 1986 Code are each amended by striking out all that follows "section 219" in the last sentence thereof and inserting in lieu thereof "shall be computed without r^ard to section 219(g).". (4)(A) Section 6693(b) of the 1986 Code (relating to overstatement of designated nondeductible contributions) is amended to read as follows:

�