Page:United States Statutes at Large Volume 102 Part 4.djvu/616

 102 STAT. 3586

PUBLIC LAW 100-647—NOV. 10, 1988 "(2) TAX-EXEMPT PORTION.—For purposes of paragraph (1), the

26 USC 1286 J^ote.

tax-exempt portion of the original issue discount determined under subsection (a) is the excess of— "(A) the amount referred to in subsection (a)(D, over "(B) an issue price which would produce a jdeld to maturity as of the purchase date equal to the lower of— "(i) the coupon rate of interest on the obligation from which the coupons were separated, or "(ii) the yield to maturity (on the basis of the purchase price) of the stripped obligation or coupon. The purchaser of any stripped obligation or coupon may elect to apply clause (i) by substituting 'original yield to maturity of for 'coupon rate of interest on'." (B)(i) Except as provided in clause (ii), the amendment made by subparagraph (A) shall apply to any purchase or sale after June 10, 1987, of any stripped tax-exempt obligation or stripped coupon from such an obligation. (ii)If(I) any person held any obligation or coupon in stripped form on June 10, 1987, and (II) such obligation or coupon was held by such person on such date for sale in the ordinary course of such person's trade or business, the amendment made by subparagraph (A) shall not apply to any sale of such obligation or coupon by such person and shall not apply to any such obligation or coupon while held by another person who purchased such obligation or coupon from the person referred to in subclause (I). (5) Clause (ii) of section 368(a)(2)(F) of the 1986 Code is amended— (A) by striking out the two parenthetical phrases in the first sentence, and (B) by adding at the end thereof the following new sentence: For purposes of this clause, a person holding stock in a regulated investment company, a real estate investment trust, or an investment company which meets the requirements of this clause shall, except as provided in regulations, be treated as holding its proportionate share of the assets held by such company or trust. (r) AMENDMENTS RELATED TO SECTION 1895 OF THE REFORM ACT.—

42 USC 1395WW and note.

(1) Subsection (b) of section 1895 of the Reform Act is amended by Striking out paragraphs (1) and (2). (2)(A) Clause (ii) of section 3121(u)(2)(B) of the 1986 Code is amended by striking out "or" at the end of subclause (IV), by striking out the period at the end of subclause (V) and inserting in lieu thereof ', or", and by inserting after subclause (V) the following new subclause: "(VI) by an individual in a position described in section 1402(c)(2)(E)." (B) The amendment made by subparagraph (A) shall apply to services performed after March 31, 1986. (s) MISCELLANEOUS PROVISIONS.—

(1) Subsection (a) of section 8021 of the 1986 Code is amended by striking out "6103(d)" and inserting in lieu thereof "6103(f)". (2)(A) Section 2503 of the 1986 Code is amended by adding at the end thereof the following new subsection: "(f) TREATMENT OF CERTAIN LOANS OF ARTWORKS.—

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