Page:United States Statutes at Large Volume 107 Part 1.djvu/469

 PUBLIC LAW 103-66 —AUG. 10, 1993 107 STAT. 443 (1) IN GENERAL.—The amendments made by this section shall apply to acquisitions on or after January 1, 1994. (2) SMALL LEASES.— The provisions of section 514(c)(9)(G)(i) of the Internal Revenue Code of 1986 shall, in addition to any leases to which the provisions apply by reason of paragraph (1), apply to leases entered into on or after January 1, 1994. SEC. 13145. REPEAL OF SPECIAL TREATMENT OF PUBLICLY TREATED PARTNERSHIPS. (a) GENERAL RULE.— Subsection (c) of section 512 is amended— 26 USC 512. (1) by striking paragraph (2), (2) by redesignating paragraph (3) as paragraph (2), and (3) by striking "paragraph (1) or (2) in paragraph (2) (as so redesignated) and inserting ''paragraph (1)". (b) EFFECTIVE DATE.— The amendments made by subsection 26 USC 512 note. (a) shall apply to partnership years beginning on or after January 1, 1994. SEC. 13146. TITLE-HOLDING COMPANIES PERMITTED TO RECEIVE SMALL AMOUNTS OF UNRELATED BUSINESS TAXABLE INCOME. (a) GENERAL RULE. —Paragraph (25) of section 501(c) is amended by adding at the end thereof the following new subparagraph: "(G)(i) An organization shall not be treated as failing to be described in this paragraph merely by reason of the receipt of any otherwise disqualifying income which is incidentally derived from the holding of real property. "(ii) Clause (i) shall not apply if the amount of gross income described in such clause exceeds 10 percent of the organization's gross income for the taxable year unless the organization establishes to the satisfaction of the Secretary that the receipt of gross income described in clause (i) in excess of such limitation was inadvertent and reasonable steps are being taken to correct the circumstances giving rise to such income." (b) CONFORMING AMENDMENT. — Paragraph (2) of section 501(c) is amended by adding at the end thereof the following new sentence: "Rules similar to the rules of subparagraph (G) of paragraph (25) shall apply for purposes of this paragraph.** (c) EFFECTIVE DATE.— The amendments made by this section 26 USC 501 note. shall apply to taxable years beginning on or after January 1, 1994. SEC. 13147. EXCLUSION FROM UNRELATED BUSINESS TAX OF GAINS FROM CERTAIN PROPERTY. (a) GENERAL RULE. —Subsection (b) of section 512 (relating to modifications) is amended by adding at the end thereof the following new paragraph: "(16)(A) Notwithstanding paragraph (5)(B), there shall be excluded all gains or losses from the sale, exchange, or other disposition of any real property described in subparagraph (B) if— "(i) such property was acquired by the organization from— "(I) a financial institution described in section 581 or 591(a) which is in conservatorship or receivership, or

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