Page:United States Statutes at Large Volume 119.djvu/2648

 119 STAT. 2630

26 USC 853.

VerDate 14-DEC-2004

07:21 Oct 30, 2006

PUBLIC LAW 109–135—DEC. 21, 2005

the enactment of the American Jobs Creation Act of 2004)’’ after ‘‘a list under subsection (a)’’. (aa) AMENDMENTS RELATED TO SECTION 832 OF THE ACT.— (1) Subsection (e) of section 853 is amended to read as follows: ‘‘(e) TREATMENT OF CERTAIN TAXES NOT ALLOWED AS A CREDIT UNDER SECTION 901.—This section shall not apply to any tax with respect to which the regulated investment company is not allowed a credit under section 901 by reason of subsection (k) or (l) of such section.’’. (2) Clause (i) of section 901(l)(2)(C) is amended by striking ‘‘if such security were stock’’. (bb) AMENDMENTS RELATED TO SECTION 833 OF THE ACT.— (1) Subsection (a) of section 734 is amended by inserting ‘‘with respect to such distribution’’ before the period at the end. (2) So much of subsection (b) of section 734 as precedes paragraph (1) is amended to read as follows: ‘‘(b) METHOD OF ADJUSTMENT.—In the case of a distribution of property to a partner by a partnership with respect to which the election provided in section 754 is in effect or with respect to which there is a substantial basis reduction, the partnership shall—’’. (cc) AMENDMENT RELATED TO SECTION 835 OF THE ACT.—Paragraph (3) of section 860G(a) is amended— (1) in subparagraph (A)(iii)(I), by striking ‘‘the obligation’’ and inserting ‘‘a reverse mortgage loan or other obligation’’, and (2) by striking all that follows subparagraph (C) and inserting the following: ‘‘For purposes of subparagraph (A), any obligation secured by stock held by a person as a tenant-stockholder (as defined in section 216) in a cooperative housing corporation (as so defined) shall be treated as secured by an interest in real property. For purposes of subparagraph (A), any obligation originated by the United States or any State (or any political subdivision, agency, or instrumentality of the United States or any State) shall be treated as principally secured by an interest in real property if more than 50 percent of such obligations which are transferred to, or purchased by, the REMIC are principally secured by an interest in real property (determined without regard to this sentence).’’. (dd) AMENDMENTS RELATED TO SECTION 836 OF THE ACT.— (1) Paragraph (1) of section 334(b) is amended by striking ‘‘except that’’ and all that follows and inserting ‘‘except that, in the hands of such distributee— ‘‘(A) the basis of such property shall be the fair market value of the property at the time of the distribution in any case in which gain or loss is recognized by the liquidating corporation with respect to such property, and ‘‘(B) the basis of any property described in section 362(e)(1)(B) shall be the fair market value of the property at the time of the distribution in any case in which such distributee’s aggregate adjusted basis of such property would (but for this subparagraph) exceed the fair market value of such property immediately after such liquidation.’’.

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