Page:United States Statutes at Large Volume 124.djvu/1088

 124 STAT. 1062 PUBLIC LAW 111–152—MAR. 30, 2010 ‘‘(B) a trade or business of trading in financial instruments or commodities (as defined in section 475(e)(2)). ‘‘(3) INCOME ON INVESTMENT OF WORKING CAPITAL SUBJECT TO TAX.—A rule similar to the rule of section 469(e)(1)(B) shall apply for purposes of this subsection. ‘‘(4) EXCEPTION FOR CERTAIN ACTIVE INTERESTS IN PARTNER- SHIPS AND S CORPORATIONS.—In the case of a disposition of an interest in a partnership or S corporation— ‘‘(A) gain from such disposition shall be taken into account under clause (iii) of paragraph (1)(A) only to the extent of the net gain which would be so taken into account by the transferor if all property of the partnership or S corporation were sold for fair market value immediately before the disposition of such interest, and ‘‘(B) a rule similar to the rule of subparagraph (A) shall apply to a loss from such disposition. ‘‘(5) EXCEPTION FOR DISTRIBUTIONS FROM QUALIFIED PLANS.—The term ‘net investment income’ shall not include any distribution from a plan or arrangement described in sec- tion 401(a), 403(a), 403(b), 408, 408A, or 457(b). ‘‘(6) SPECIAL RULE.—Net investment income shall not include any item taken into account in determining self-employ- ment income for such taxable year on which a tax is imposed by section 1401(b). ‘‘(d) MODIFIED ADJUSTED GROSS INCOME.—For purposes of this chapter, the term ‘modified adjusted gross income’ means adjusted gross income increased by the excess of— ‘‘(1) the amount excluded from gross income under section 911(a)(1), over ‘‘(2) the amount of any deductions (taken into account in computing adjusted gross income) or exclusions disallowed under section 911(d)(6) with respect to the amounts described in paragraph (1). ‘‘(e) NONAPPLICATION OF SECTION.—This section shall not apply to— ‘‘(1) a nonresident alien, or ‘‘(2) a trust all of the unexpired interests in which are devoted to one or more of the purposes described in section 170(c)(2)(B).’’. (2) ESTIMATED TAXES.—Section 6654 of the Internal Rev- enue Code of 1986 is amended— (A) in subsection (a), by striking ‘‘and the tax under chapter 2’’ and inserting ‘‘the tax under chapter 2, and the tax under chapter 2A’’; and (B) in subsection (f)— (i) by striking ‘‘minus’’ at the end of paragraph (2) and inserting ‘‘plus’’; and (ii) by redesignating paragraph (3) as paragraph (4) and inserting after paragraph (2) the following new paragraph: ‘‘(3) the taxes imposed by chapter 2A, minus’’. (3) CLERICAL AMENDMENT.—The table of chapters for sub- title A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after the item relating to chapter 2 the following new item: 26 USC 6654. Applicability. Applicability.