Page:United States Statutes at Large Volume 102 Part 4.djvu/633

 PUBLIC LAW 100-647—NOV. 10, 1988

102 STAT. 3603

"(ii) the day (if any) as of which such partnership ceases to be treated as an existing partnership by reason of subparagraph (B)." (3) Paragraph (1) of section 7704(c) of the 1986 Code is amended by adding a t the end thereof the following new sentence: "For purposes of the preceding sentence, a partnership shall not be treated as being in existence during any period before the 1st taxable year in which such partnership (or a predecessor) was a publicly traded partnership." (4) Paragraph (1) of section 7704(d) of the 1986 Code is amended by adding at the end thereof the following new sentence: "For purposes of subparagraph (E), the term 'mineral or natural resource' means any product of a character with respect to which a deduction for depletion is allowable under section 611; except that such term shall not include any product described in subparagraph (A) or (B) of section 613(b)(7). (5) Paragraph (3) of section 7704(d) of the 1986 Code is amended to read as follows: "(3) REAL PROPERTY RENT.—The term 'real property rent' means amounts which would qualify as rent from real property under section 856(d) if— "(A) such section were applied without regard to paragraph (2)(C) thereof (relating to independent contractor requirements), and (B) stock owned, directly or indirectly, by or for a partner would not be considered as owned under section 318(a)(3)(A) by the partnership unless 5 percent or more (by value) of the interests in such partnership are owned, directly or indirectly, by or for such partner.' (g) AMENDMENT RELATED TO SECTION 10212 OF THE ACT.—Subsec-

tion (k) of section 469 of the 1986 Code is amended by adding at the end thereof the following new paragraph: "(3) COORDINATION WITH SUBSECTION (g).—For purposes of

subsection (g), a taxpayer shall not be treated as having disposed of his entire interest in an activity of a publicly traded partnership until he disposes of his entire interest in such partnership." (h) AMENDMENTS RELATED TO SECTION 10214 OF THE ACT.—

(1) Subparagraph (E) of section 514(c)(9) of the 1986 Code is amended by adding at the end thereof the following new clause: (iii) REGULATIONS.—The Secretary shall prescribe such regulations as may be necessary to carry out the purposes of this subparagraph, including regulations which may provide for exclusion or segregation of items." (2) Clause (i) of section 514(c)(9)(E) of the 1986 Code is amended by striking out subclause (I) and by redesignating subclauses (ID and (III) as subclauses (I) and (II), respectively. (i) AMENDMENTS RELATED TO SECTION 10221 OF THE ACT.—

(1) Paragraph (2) of section 10221(e) of the Revenue Act of 1987 is amended by striking out "amendments made by subsec- 26 USC 243 note. tion (b)" and inserting in lieu thereof "amendments made by subsection (c)". (2) Subsection (b) of section 244 of the 1986 Code is amended by striking out "section 243(c)(4)" and inserting in lieu thereof "section 243(d)(4)". (j) AMENDMENTS RELATED TO SECTION 10222 OF THE ACT.—

�