Page:United States Statutes at Large Volume 102 Part 4.djvu/784

 102 STAT. 3754

PUBLIC LAW 100-647—NOV. 10, 1988

by adding at the end thereof the following new sentence: "The determination as to whether an ownership change has occurred during the period beginning January 1, 1987, and ending on the final settlement of any reorganization or proceeding described in the preceding sentence shall be redetermined as of the time of such final settlement." (b) ELECTION TO HAVE N E W RULES APPLY.—Section 621(f)(5) of the

26 USC 382 ^°^^26 USC 382 note. 26 USC 7503 note.

Tax Reform Act of 1986 is amended by striking out "In" and inserting in lieu thereof "Unless the taxpayer elects not to have the provisions of this paragraph apply, in". (c) EFFECTIVE DATE.—The amendments made by this section shall take effect as if included in section 621(f)(5) of the Tax Reform Act of 1986. SEC. 6278. APPLICATION OF SECTION 7503 OF 1986 CODE FOR PURPOSES OF SECTION 10222(b) OF REVENUE ACT OF 1987.

Section 7503 of the 1986 Code shall apply for purposes of determining whether any disposition meets the requirements of section 10222a)X2XB) of the Revenue Act of 1987. If any disposition meets the requirements of such section by reason of the preceding sentence, for all purposes of the 1986 Code, such disposition shall be deemed to have occurred on December 31, 1988. SEC. 6279. INTEREST EARNED BY BROKERS OR DEALERS NOT TAKEN INTO ACCOUNT AS PERSONAL HOLDING COMPANY INCOME.

(a) IN GENERAL.—Paragraph (1) of section 543(a) of the 1986 Code is amended by striking out "and" at the end of subparagraph (B), by striking out the period at the end of subparagraph (C) and inserting in lieu thereof ", and" and by adding at the end thereof the following new subparagraph: "(D) interest received by a broker or dealer (within the meaning of section 3(a)(4) or (5) of the Securities and Exchange Act of 1934) in connection with— "(i) any securities or money market instruments held as property described in section 1221(1), "(ii) margin accounts, or "(iii) any financing for a customer secured by securities or money market instruments." 26 USC 543 note. (b) EFFECTIVE DATE.—The amendments made by this section shall apply to interest received after the date of the enactment of this Act, in taxable years ending after such date. 26 USC 543 note.

SEC. 6280. TREATMENT OF CERTAIN BANK HOLDING COMPANIES.

(a) GENERAL RULE.—For purposes of subtitle A of the 1986 Code, the term "personal holding company income" shall not include any dividend received by a qualified bank holding company from a 25-percent owned bank during any taxable year ending in 1989 or 1990. (b) $3,000,000 LIMITATION.—The aggregate amount excluded from the personal holding company income of any qualified bank holding company under subsection (a) for the taxable year shall not exceed $3,000,000. (c) QuAUFiED BANK HOLDING COMPANY.—For purposes of this section, the term "qualified bank holding company" means any bank holding company (as defined in section 2(a) of the Bank Holding Company Act of 1956) if 80 percent or more (by value) of the

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