Page:United States Statutes at Large Volume 102 Part 4.djvu/520

 102 STAT. 3490

26 USC 134 note.

26 USC 134 note.

PUBLIC LAW 100-647—NOV. 10, 1988 (2)(A) Section 134(b)(l) of the 1986 Code is amended by inserting "(other than personal use of a vehicle)" after "in-kind benefit". (B) The amendment made by subparagraph (A) shall apply to taxable years beginning after December 31, 1986. (3) Section 134(b)(3)(A) of the 1986 Code is amended by striking out "under any provision of law or r^^ation described in paragraph (1)". (4) Section 1168(c) of the Reform Act is amended by striking out "1986" and inserting in lieu thereof "1984". (g) AMENDMENTS RELATED TO SECTION 1172 OF THE REFORM ACT.—

26 USC 409.

Loans.

(1) Section 1172(b)(l)(A) of the Reform Act is amended by inserting "each place it appears" before the comma. (2) Paragraphs (2) and (3) of section 409(n) of the 1986 Code (relating to securities received in certain transactions) is amended by inserting "or section 2057" after "section 1042" each place it appears. (3) Paragraph (1) of section 2057(b) of the 1986 Code (relating to qualified sale) is amended by striking out "is". (h) AMENDMENTS RELATED TO SECTION 1 1 7 3 OF THE REFORM ACT.—

(1) Section 133 of the 1986 Code (relating to exclusion of interest on securities acquisition loans) is amended by adding at the end thereof the following new subsection: "(e) PERIOD TO WHICH INTEREST EXCLUSION APPLIES.—

"(1) IN GENERAL.—In the case of— "(A) an original securities acquisition loan, and "(B) any securities acquisition loan (or series of such loans) used, to refinance the original securities acquisition loan, subsection (a) shall apply only to interest accruing during the excludable period with respect to the original securities acquisition loan. "(2) ElxcLUDABLE PERIOD.—For purposes of this subsection, the term 'excludable period' means, with respect to any original securities acquisition loan— "(A) IN GENERAL.—The 7-year period beginning on the date of such loan. "(B)

LOANS DESCRIBED IN SUBSECTION 0)X1XA).—If

the

term of an original securities acquisition loan described in subsection (b)(l)(A) is greater than 7 years, the term of such loan. This subparagraph shall not apply to a loan described in subsection (b)(3)(B). "(3) ORIGINAL SECURITIES ACQUISITION LOAN.—For the purposes of this subsection, the term 'original securities acquisition loan' means a securities acquisition loan described in subparagraph (A) or (B) of subsection a>Xl)." (2)(A) Section 133(b) of the 1986 Code (defining securities acquisition loan) is amended— (i) by strikii^ out "or are used to refinance such a loan," in paragraph (I)(A), (ii) by striking out ", except that this subparagraph shall not apply to any loan the commitment period of which exceeds 7 years" in paragraph (1)(B), and (iii) by adding at the end thereof the following new paragraph: "(5) TMAT»«ENT OF REFINANCINGS.—The term 'securities acquisition loan' shall include any loan which—

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