Page:United States Statutes at Large Volume 102 Part 4.djvu/680

 102 STAT. 3650

PUBLIC LAW 100-647—NOV. 10, 1988 "(B) not later than 90 days after the date such indebtedness is provided, provide a written statement to the mortgagor specifying— "(i) the federally-subsidized amount with respect to such indebtedness, and "(ii) the amounts described in paragraph (5)(B)(ii) for each category of family size for each year of the 10-year period beginning on the date the financing was provided. "(8) SPECIAL RULES.—

"(A) No BASIS ADJUSTMENT.—No adjustment shall be made to the basis of any property for the increase in tax under this subsection. "(B) SPECIAL RULE WHERE 2 OR MORE PERSONS HOLD INTERESTS IN RESIDENCE.—Except as provided in subparagraph

(C) and in regulations prescribed by the Secretary, if 2 or more persons hold interests in any residence and are jointly liable for the federally-subsidized indebtedness, the recapture amount shall be determined separately with respect to their respective interests in the residence. "(C) TRANSFERS TO SPOUSES AND FORMER SPOUSES.—Para-

graph (1) shall not apply to any transfer on which no gain or loss is recognized under section 1041. In any such case, the transferee shall be treated under this subsection in the same manner as the transferor would have been treated had such transfer not occurred. "(D) REGULATIONS.—The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out this subsection, including regulations dealing with dispositions of partial interests in a residence." (2) ISSUER INFORMATION REQUIREMENT.—

(A) Subparagraph (A) of section 143(a)(2) of the 1986 Code is amended by striking out "and (i)" and inserting in lieu thereof "(i), and (m)(7)". (B) Subparagraph (C) of section 143(a)(2) of the 1986 Code is amended by striking out "and (h)" and inserting in lieu thereof ", (h), and (m)(7)". (3) BROKER REPORTING.—Subsection (e) of section 6045 of the 1986 Code is amended by adding at the end thereof the following new paragraph: "(3)

WHETHER

SELLER'S

FINANCING

WAS FEDERALLY-SUB-

SIDIZED.—In the case of a real estate transaction involving a residence, the real estate broker shall specify on the return under subsection (a) and the statement under subsection (b) whether or not the financing (if any) of the seller was federallysubsidized indebtedness (as defined in section 143(m)(3))." (4) No CREDITS AGAINST TAX.—Paragraph (2) of section 260)) of the 1986 Code (relating to limitation based on tax liability; definition of tax liability), as amended by title I of this Act, is amended by striking out "and" at the end of subparagraph (K), by striking out the period at the end of subparagraph (L) and inserting in lieu thereof ", and", and by adding at the end thereof the following new subparagraph: "(M) section 143(m) (relating to recapture of portion of federal subsidy from use of mortgage bonds and mortgage credit certificates)."

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