Page:United States Statutes at Large Volume 103 Part 3.djvu/277

 PUBLIC LAW 101-239—DEC. 19, 1989 103 STAT. 2345 " (ii) ACQUISITIONS DURING 24-MONTH PERIOD.— All ac- quisitions during any 24-month period shall be treated as pursuant to 1 plan. "(E) RULES FOR APPLYING SUBPARAGRAPH (C).— For pur- poses of subparagraph (C)— " (i) CERTAIN PREFERRED STOCK DISREGARDED. — Stock described in section 1504(a)(4), and distributions (including redemptions) with respect to such stock, shall be disregarded. "(ii) ISSUANCE OF STOCK. —The amounts determined under clauses (i) and (iiXD of subparagraph (C) shall be reduced by the aggregate amount of stock issued by the corporation during the applicable period in exchange for money or property other than stock in the corpora- tion. "(4) OTHER RULES. — "(A) ORDERING RULE. —For purposes of paragraph (1), in determining the allocable interest deductions taken into account in computing the net operating loss for any taxable year, taxable income for such taxable year shall be treated as having been computed by taking allocable interest deductions into account after £dl other deductions. " (B) COORDINATION WITH SUBSECTION (BX2).— In applying paragraph (2) of subsection (b), the corporate equity reduc- tion interest loss shall be treated in a manner similar to the manner in which a foreign expropriation loss is treated. "(C) MEMBERS OF AFFILIATED GROUPS.— Except as provided by regulations, all members of an affiliated group filing a consolidated return under section 1501 shall be treated as 1 taxpayer for purposes of this subsection and subsection (b)(l)(M). "(5) REGULATIONS.—The Secretary shall prescribe such regu- lations as may be necessary to carry out the purposes of this subsection, including regulations— "(A) for applying this subsection to successor corporations and in cases where a taxpayer becomes, or ceases to be, a member of an affiliated group filing a consolidated return under section 1501, "(B) to prevent the avoidance of this subsection through related parties, pass-through entities, and intermediaries, and "(C) for applying this subsection where more than 1 corporation is involved in a corporate equity reduction transaction, (c) EFFECTIVE DATE. — 26 USC 172 note. (1) IN GENERAL.— Except as.provided in this subsection, the amendments made by this section shall apply to corjporate equity reduction transactions occurring after August 2, 1989, in taxable years ending after August 2, 1989. (2) EXCEPTIONS. — In determining whether a corporate equity reduction transaction has occurred sifter August 2, 1989, there shall not be taken into account— (A) acquisitions or redemptions of stock, or distributions with respect to stock, occurring on or before August 2, 1989, (B) acquisitions or redemptions of stock after August 2, 1989, pursuant to a binding written contract (or tender offer filed with the Securities and Exchange Commission) in

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