Page:United States Statutes at Large Volume 118.djvu/1621

 118 STAT. 1591 PUBLIC LAW 108–357—OCT. 22, 2004 ‘‘(f) ELECTING INVESTMENT PARTNERSHIPS.—In the case of any electing investment partnership (as defined in section 743(e)(6)), the information required under subsection (b) to be furnished to any partner to whom section 743(e)(2) applies shall include such information as is necessary to enable the partner to compute the amount of losses disallowed under section 743(e).’’. (5) SPECIAL RULE FOR SECURITIZATION PARTNERSHIPS.—Sec tion 743 is amended by adding after subsection (e) the following new subsection: ‘‘(f) EXCEPTION FOR SECURITIZATION PARTNERSHIPS.— ‘‘(1) NO ADJUSTMENT OF PARTNERSHIP BASIS.—For purposes of this section, a securitization partnership shall not be treated as having a substantial built in loss with respect to any transfer. ‘‘(2) SECURITIZATION PARTNERSHIP.—For purposes of para graph (1), the term ‘securitization partnership’ means any part nership the sole business activity of which is to issue securities which provide for a fixed principal (or similar) amount and which are primarily serviced by the cash flows of a discrete pool (either fixed or revolving) of receivables or other financial assets that by their terms convert into cash in a finite period, but only if the sponsor of the pool reasonably believes that the receivables and other financial assets comprising the pool are not acquired so as to be disposed of.’’. (6) CLERICAL AMENDMENTS.—(A) The section heading for section 743 is amended to read as follows: ‘‘SEC. 743. SPECIAL RULES WHERE SECTION 754 ELECTION OR SUBSTANTIAL BUILT IN LOSS.’’. (B) The table of sections for subpart C of part II of sub chapter K of chapter 1 is amended by striking the item relating to section 743 and inserting the following new item: ‘‘Sec. 743. Special rules where section 754 election or substantial built in loss.’’. (c) ADJUSTMENT TO BASIS OF UNDISTRIBUTED PARTNERSHIP PROPERTY IF THERE IS SUBSTANTIAL BASIS REDUCTION.— (1) ADJUSTMENT REQUIRED.—Subsection (a) of section 734 (relating to optional adjustment to basis of undistributed part nership property) is amended by inserting before the period the following: ‘‘or unless there is a substantial basis reduction’’. (2) ADJUSTMENT.—Subsection (b) of section 734 is amended by inserting ‘‘or unless there is a substantial basis reduction’’ after ‘‘section 754 is in effect’’. (3) SUBSTANTIAL BASIS REDUCTION.—Section 734 is amended by adding at the end the following new subsection: ‘‘(d) SUBSTANTIAL BASIS REDUCTION.— ‘‘(1) IN GENERAL.—For purposes of this section, there is a substantial basis reduction with respect to a distribution if the sum of the amounts described in subparagraphs (A) and (B) of subsection (b)(2) exceeds $250,000. ‘‘(2) REGULATIONS.— ‘‘For regulations to carry out this subsection, see section 743(d)(2).’’. (4) EXCEPTION FOR SECURITIZATION PARTNERSHIPS.—Section 734 is amended by inserting after subsection (d) the following new subsection:

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