Page:United States Statutes at Large Volume 104 Part 2.djvu/923

 PUBLIC LAW 101-508 —NOV. 5, 1990 104 STAT. 1388-515 determined under rules similar to the rules of section l(i)(3)(B), and rules similar to the rules of paragraphs (3)(D) and (5) of section l(i) shall apply for purposes of this paragraph." (3) Subparagraph (D) of section 59(j)(2), is amended by striking " paragraphs (5) and (6)" and inserting "paragraphs (3)(D), (5), and (6)". (e) AMENDMENTS RELATED TO SECTION 1018. — (1) Subsection (e) of section 468B is amended by striking "This section" and inserting "This section (other than subsection (g))". (2) Subsection (c) of section 355 is amended to read as follows: "(c) TAXABILITY OF CORPORATION ON DISTRIBUTION. — "(1) IN GENERAL.—Except as provided in paragraph (2), no gain or loss shall be recognized to a corporation on any distribution to which this section (or so much of section 356 as relates to this section) applies and which is not in pursuance of a plan of reorganization. " (2) DISTRIBUTION OF APPRECIATED PROPERTY. — " (A) IN GENERAL. —I f— "(i) in a distribution referred to in paragraph (1), the corporation distributes property other than stock or \ securities in the controlled corporation, and "(ii) the fair market value of such property exceeds its adjusted basis (in the hands of the distributing corporation), then gain shall be recognized to the distributing corporation as if such property were sold to the distributee at its fair market value. "(B) TREATMENT OF LIABILITIES.— I f any property distributed in the distribution referred to in paragraph (1) is subject to a liability or the shareholder assumes a liability of the distributing corporation in connection with the distribution, then, for purposes of subparagraph (A), the fair market value of such property shall be treated as not less than the amount of such liability. "(3) COORDINATION WITH SECTIONS 311 AND 336(a). —Sections 311 and 336(a) shall not apply to any distribution referred to in paragraph (1)." (f) AMENDMENT RELATED TO SECTION 3011. — Paragraph (1) of section 4980B(d) is amended to read as follows: "(1) any failure of a group health plan to meet the requirements of subsection (f) with respect to any qualified beneficiary if the qualifying event with respect to such beneficiary occurred during the calendar year immediately following a calendar year during which all employers maintaining such plan normally employed fewer than 20 employees on a typical business day,". (g) AMENDMENTS RELATED TO SECTION 5033. — (1) Subsection (i) of section 2523 is amended by adding at the end thereof the following new sentence: "This subsection shall not apply to any transfer resulting from the acquisition of rights under a joint and survivor annuity described in subsection (f)(6). " (2)(A) Paragraph (1) of section 2056A(a) is amended to read as follows: "(1) the trust instrument—

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