Page:United States Statutes at Large Volume 102 Part 4.djvu/629

 PUBLIC LAW 100-647—NOV. 10, 1988

102 STAT. 3599

(1) Subsection (h) of section 163 of the 1986 Code is amended by redesignating paragraph (6) as paragraph (5). (2) Clause (ii) of section 56(b)(l)(C) of the 1986 Code is amended by striking out "163(h)(6)" and inserting in lieu thereof "163(h)(5)". (3) Paragraph (1) of section 56(e) of the 1986 Code is amended— (A) by striking out "substantially rehabilitating" and inserting in lieu thereof "substantially improving", and (B) by striking out "or is paid" in subparagraph (A). (c) AMENDMENT RELATED TO SECTION 10103.—Paragraph (1) of section 10103(a) of the Revenue Act of 1987 is amended by inserting 26 USC 219 note. "in a plan established for its employees by the United States" after "participant". (d) AMENDMENTS RELATED TO SECTION 10202 OF THE ACT.— (1) Subparagraph (A) of section 453(1)(1) of the 1986 Code, is amended by striking out "disposes of personal property" and inserting in lieu thereof "disposes of personal property of the same type". (2) Section 453A of the 1986 Code is amended by adding at the end thereof the following new subsection: "(e) REGULATIONS.—The Secretary shall prescribe such regulations as may be necessary to carry out the purposes of this section, including regulations— "(1) disallowing the use of the installment method in whole or in part for transactions in which the rules of this section otherwise would be avoided through the use of related persons, pass-thru entities, or intermediaries, and "(2) providing that the sale of an interest in a partnership or other pass-thru entity will be treated as a sale of the proportionate share of the assets of the partnership or other entity." (3) Paragraph (3) of section 10202(e) of the Revenue Act of 1987 is amended by adding at the end thereof the following new 26 USC 453 note. subparagraph: "(C) CERTAIN DISPOSITIONS DEEMED MADE ON 1ST DAY OF

TAXABLE YEAR.—If the taxpayer makes an election under subparagraph (A), in the case of the taxpayer's 1st taxable year ending after December 31, 1986— "(i) dispositions after August 16, 1986, and before the 1st day of such taxable year shall be treated as made on such 1st day, and "(ii) subsections (b)(2)(B) and (c)(4) of section 453A of such Code shall be applied separately with respect to such dispositions by substituting for '$5,000,000' the amount which bears the same ratio to $5,000,000 as the number of days after August 16, 1986, and before such 1st day bears to 365." (4) Paragraph (2) of section 10202(e) of the Revenue Act of 1987 is amended by adding at the end thereof the following new subparagraph: "(C) CERTAIN RULES MADE APPLICABLE.—For purposes of

this paragraph, rules similar to the rules of paragraphs (4) and (5) of section 812(c) of the Tax Reform Act of 1986 (as added by the Technical and Miscellaneous Revenue Act of 1988) shall apply." (5) Subsection (k) of section 453 of the 1986 Code is amended by striking out "and section 453A".

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