Page:United States Statutes at Large Volume 103 Part 3.djvu/340

 103 STAT. 2408 PUBLIC LAW 101-239—DEC. 19, 1989 Effective date. 26 USC 58 note. during such taxable year. The character of such loss shall be determined by allocating the loss proportionately among the recognized built-in gains giving rise to such tax." (8) Subparagraph (B) of section 1374(b)(3) is amended by Corporations. adding at the end the following new sentence: "A similar rule shall apply in the case of the minimum tax credit under section 53 to the extent attributable to taxable years for which the corporation was a C corporation." (9) The last sentence of section 860G(a)(3) is amended by striking "this subparagraph" and inserting "subparagraph (A). (d) AMENDMENTS RELATED TO SECTION 1007 OF THE 1988 ACT.— (I)(A) Subsection (g) of section 59 is amended by striking "for any taxable year" and inserting "for the taxable year for which the item is taken into account or for any other taxable year". (B) The repeal of section 58(h) of the Internal Revenue Code of 1954 by the Tax Reform Act of 1986 shall be effective only with respect to items of tax preference arising in taxable years beginning after December 31, 1986. (2) Subclause (II) of section 53(d)(l)(B)(i) is amended by insert- ing before the period at the end the following: "and if section 59(a)(2) did not apply". (3) Paragraph (3) of section 56(b) is amended— (A) by inserting after the first sentence the following new sentence: "Section 422A(c)(2) shall apply in any case where the disposition and the inclusion for purposes of this part are within the same taxable year and such section shall not apply in any other case.", and (B) by striking "the preceding sentence" and inserting "this paragraph'. (e) AMENDMENTS RELATED TO SECTION 1008 OF THE 1988 ACT.— (1) Paragraph (2) of section 460(a) is amended by inserting "(or, with respect to any amount properly taken into account after completion of the contract, when such amount is so prop- erly taken into account)" after "any long-term contract". (2) Subparagraph (B) of section 46O0t)X2) is amended— (A) by striking "any amount received or accrued" and inserting "any amount properly taken into account", and (B) by striking "is so received or accrued" and inserting "is so properly taken into account". (3) Paragraph (3) of section 460(b) is amended— (A) by striking "any amount received or accrued" in the < second sentence and inserting "any amount properly taken into account", and (B) by striking "such amount was received or accrued" in the second sentence and inserting "such amount was prop- erly taken into account". (4) Paragraph (2) of section 460(b) is amended by adding at the end the following new sentence: "In the case of any long-term contract with respect to which the percentage of completion method is used, except for purposes of applying the look-back method of paragraph (3), any income under the contract (to the extent not previously includible in gross income) shall be included in gross income for the taxable year following the taxable year in which the contract was completed." (5) Paragraph (2) of section 460(e) is amended by striking "and" at the end of subparagraph (A), by inserting "and" at the Contracts.

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