Page:United States Statutes at Large Volume 102 Part 4.djvu/636

 102 STAT. 3606

26 USC 304 note.

PUBLIC LAW 100-647—NOV. 10, 1988

from the amendments made by this section if such distribution is with respect to stock not held by the distributee (determined without regard to clause (i)) on the designated date directly or indirectly through a corporation which goes out of existence in the transaction. "(iii) DESIGNATED DATE.—For purposes of this subparagraph, the term 'designated date' means the later of— "(I) December 15, 1987, or "(11) the date on which the acquisition meeting the requirements of subparagraph (A) occurred. (4) Subparagraph (B) of section 10223(d)(2) of the Revenue Act of 1987 is amended— (A) by striking out "before January 1, 1993" and inserting in lieu thereof "on or before March 31, 1988", and (B) by striking out "before January 1, 1989,". (1) AMENDMENT RELATED TO SECTION 10224 OF THE ACT.—Sections 1201(a) and 1561(a) of the 1986 Code, and section 904(b)(3)(D)(ii) of the 1986 Code (as amended by section 106(b)(2) of this Act), are each amended by striking out "section 11(b)" and inserting in lieu thereof "section IKbXD". (m) AMENDMENTS RELATED TO SECTION 10226 OF THE ACT.— (I)(A) Subsection (a) of section 384 of the 1986 Code is amended to read as follows: "(a) GENERAL RULE.—If—

"(I)(A) a corporation acquires directly (or through 1 or more other corporations) control of another corporation, or "(B) the assets of a corporation are acquired by another corporation in a reorganization described in subparagraph (A), (C), or (D) of section 368(a)(l), and "(2) either of such corporations is a gain corporation, income for any recognition period taxable year (to the extent attributable to recognized built-in gains) shall not be offset by any preacquisition loss (other than a preacquisition loss of the gain corporation)." (B) Subsection (c) of section 384 of the 1986 Code is amended by redesignating paragraph (4) as paragraph (8) and by inserting after paragraph (3) the following new paragraphs: "(4) GAIN CORPORATION.—The term 'gain corporation' means any corporation with a net unrealized built-in gain. (5) CONTROL.—The term 'control' means ownership of stock in a corporation which meets the requirements of section 1504(a)(2). "(6) "TREATMENT OF MEMBERS OF SAME GROUP.—Except as provided in regulations and except for purposes of subsection (b), all corporations which are members of the same afQliated group immediately before the acquisition date shall be treated as 1 corporation. To the extent provided in regulations, section 1504 shall be applied without regard to subsection (b) thereof for purposes of the preceding sentence. "(7) TREATMENT OF PREDECESSORS AND SUCCESSORS.—Any reference in this section to a corporation shall include a reference to any predecessor or successor thereof." (C) Paragraph (2) of section 384(c) of the 1986 Code is amended to read as follows: "(2) ACQUISITION DATE.—The term 'acquisition date' means

�