Page:United States Statutes at Large Volume 103 Part 3.djvu/314

 103 STAT. 2382 PUBLIC LAW 101-239—DEC. 19, 1989 attributable to periods during which the term interest was held— "(i) by an organization exempt from tax under this subtitle, or Aliens. "(ii) by a nonresident alien individual or foreign SidusS ^** corporation but only if income from the term interest is not effectively connected with the conduct of a trade or business in the United States. "(B) COORDINATION WITH SUBSECTION (h).— If, but for this subsection, a depreciation or amortization deduction would be allowable to any person with respect to any term in- terest in property, the principles of subsection (h) shall apply to such person with respect to such term interest. "(5) DEFINITIONS.—For purposes of this subsection— "(A) TERM INTEREST IN PROPERTY.— The term 'term in- terest in property' has the meaning given such term by section 1001(e)(2). "(B) RELATED PERSON. — The term 'related person' means any person bearing a relationship to the taxpayer described in subsection (b) or (e) of section 267. "(6) REGULATIONS. — l iie Secretary shall prescribe such regu- lations as may be necessary to carry out the purposes of this subsection, including regulations preventing avoidance of this subsection through cross-ownership arrangements or other- wise." 26 USC 167 note. (b) EFFECTIVE DATE.—The amendment made by subsection (a) shall apply to interests created or acquired after July 27, 1989, in taxable years ending after such date. SEC. 7646. REPORTING OF POINTS ON MORTGAGE LOANS. (a) GENERAL RULE.—Paragraph (2) of section 6050H(b) (relating to form and manner of returns) is amended by striking "and" at the end of subparagraph (B), by redesignating subparagraph (C) as subparagraph (D) and by inserting after subparagraph (B) the fol- lowing new subparagraph: "(C) the amount of points on the mortgage received during the calendar year and whether such points were ^ paid directly by the borrower, and". (b) TECHNICAL AMENDMENTS. — (1) Subparagraph (B) of section 6050H(b)(l) is amended by inserting "(other than points)" after "such interest". (2) Paragraph (2) of section 6050H(d) is amended— (A) by inserting "(other than points)" after "subsection (a)(2)",and (B) by inserting before the period at the end thereof the following: "(and the information required under subsection 0^X2X0)^^. 26 USC 6050H (c) EFFECTIVE DATE. —The amendments made by this section shall "o**- apply to returns and statements the due date for which (determined without regard to extensions) is after December 31, 1991. SEC. 7647. TREATMENT OF CERTAIN INVESTMENT-ORIENTED LIFE INSUR- ANCE CONTRACTS. (a) GENERAL RULE.—Subsection (c) of section 7702A (relating to computational rules) is amended by adding at the end thereof the following new paragraph:

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