Page:United States Statutes at Large Volume 102 Part 4.djvu/630

 102 STAT. 3600 26 USC 453 "ot®-

PUBLIC LAW 100-647—NOV. 10, 1988 (6) Subparagraph (A) of section 10202(e)(2) of the Revenue Act of 1987 is amended by striking out "section 453A of the Internal Revenue Code of 1986" and inserting in heu thereof "section 453(1)(1) of the Internal Revenue Code of 1986 as added by this SGcti o n

(7) Paragraph (2) of section 453A(b) of the 1986 Code is amended by striking out "for purposes of this paragraph" and inserting in lieu thereof "for purposes of this paragraph and subsftction fc)(4i (8) Paragraph' (3) of section 453A(b) of the 1986 Code is amended to read as follows: "(3) EXCEPTION FOR FARM PROPERTY.—An installment obligation shall not be treated as described in paragraph (1) if it arises from the disposition of any property used or produced in the trade or business of farming (within the meaning of section 2032A(e)(4) or (5)." (e) AMENDMENTS RELATED TO SECTION 10206 OF THE ACT.— (I)(A) Subsection (a) of section 444 of the 1986 (Dode is amended by striking out "as provided in subsections (b) and (c)" and inserting in lieu thereof "as otherwise provided in this section". (B) Paragraph (3) of section 444(d) of the 1986 Code is amended to read as follows: "(3) TIERED STRUCTURES, ETC.—

"(A) IN GENERAL.—Except as otherwise provided in this paragraph— "(i) no election may be under subsection (a) with respect to any entity which is part of a tiered structure, and "(ii) an election under subsection (a) with respect to any entity shall be terminated if such entity becomes part of a tiered structure. "(B) EXCEPTIONS FOR STRUCTURES CONSISTING OF CERTAIN ENTITIES WITH SAME TAXABLE YEAR.—Subparagraph (A)

shall not apply to any tiered structure which consists only of partnerships or S corporations (or both) all of which have the same taxable year." (C) Subparagraph (B) of section 444(d)(2) of the 1986 C ^ e is amended by striking out "under subparagraph (A)" and inserting in lieu thereof "under subparagraph (A) or paragraph (3)(A)". (2)(A) Section 444 of the 1986 Code is amended by redesignating subsection (f) as subsection (g) and inserting after subsection (e) the following new subsection: "(f) PERSONAL SERVICE CORPORATION.—For purposes of this section, the term 'personal service corporation' has the meaning given to such term by section 441(i)(2)." (B) Subsection (f) of section 280H of the 1986 Code is amended by adding at the end thereof the following new paragraph: "(5) PERSONAL SERVICE CORPORATION.—The term 'personal service corporation' has the meaning given to such term by section 441(i)(2)." (3) Paragraph (2) of section 280H(f) of the 1986 Code is amended by striking out "section 296A(b)(2)" and inserting in lieu thereof "section 269A(b)(2) (as modified by section 441(i)(2))".

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