Page:United States Statutes at Large Volume 109 Part 1.djvu/111

 PUBLIC LAW 104-7 —APR. 11, 1995 109 STAT. 95 (2) EFFECTIVE DATE.— The amendment made by paragraph 26 USC 1033 (1) shall apply to involuntary conversions occurring on or after note. February 6, 1995. (b) APPLICATION OF SECTION 1033 TO CERTAIN SALES REQUIRED FOR MICROWAVE RELOCATION.— (1) IN GENERAL.— Section 1033 of the Internal Revenue Code of 1986 (relating to involuntary conversions), as amended by subsection (a), is amended by redesignating subsection (j) as subsection (k) and by inserting after subsection (i) the following new subsection: "(j) SALES OR EXCHANGES TO IMPLEMENT MICROWAVE RELOCA- TION POLICY.— "(1) IN GENERAL.—For purposes of this subtitle, if a taxpayer elects the application of this subsection to a qualified sale or exchange, such sale or exchange shall be treated as an involuntary conversion to which this section applies. "(2) QUALIFIED SALE OR EXCHANGE.—For purposes of paragraph (1), the term 'qualified sale or exchange' means a sale or exchange before January 1, 2000, which is certified by the Federal Communications Commission as having been made by a taxpayer in connection with the relocation of the taxpayer from the 1850-1990MHz spectrum by reason of the Federal Communications Commission's reallocation of that spectrum for use for personal communications services. The Commission shall transmit copies of certifications under this paragraph to the Secretary." (2) EFFECTIVE DATE. — The amendment made by paragraph 26 USC 1033 (1) shall apply to sales or exchanges after March 14, 1995. °ote. SEC. 4. DENIAL OF EARNED INCOME CREDIT FOR INDIVIDUALS HAV- ING EXCESSIVE INVESTMENT INCOME. (a) IN GENERAL. —Section 32 of the Internal Revenue Code of 1986 is amended by redesignating subsections (i) and (j) as subsections (j) and (k), respectively, and by inserting after subsection (h) the following new subsection: "(i) DENIAL OF CREDIT FOR INDIVIDUALS HAVING EXCESSIVE INVESTMENT INCOME.— "(1) IN GENERAL.—No credit shall be allowed under subsection (a) for the taxable year if the aggregate amount of disqualified income of the taxpayer for the taxable year exceeds $2,350. " (2) DISQUALIFIED INCOME.— For purposes of paragraph (1), the term 'disqualified income' means— "(A) interest or dividends to the extent includible in gross income for the taxable year, "(B) interest received or accrued during the taxable year which is exempt from tax imposed by this chapter, and "(C) the excess (if any) of— "(i) gross income from rents or royalties not derived in the ordinary course of a trade or business, over "(ii) the sum of— "(I) the deductions (other than interest) which are clearly and directly allocable to such gross income, plus "(II) interest deductions properly allocable to such gross income."

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