Page:United States Statutes at Large Volume 83.djvu/692

 664

PUBLIC LAW 91-172-DEC. 30, 1969

[83 STAT.

be pre-termination property. For purposes of applying the preceding sentence in the case of a contract for the extraction of minerals, property shall be treated as specified in the contract if (i) the specifications for such property are readily ascertainable from the location and characteristics of the mineral properties specified in such contract from which the minerals are to be extracted; (ii) such property is necessary for and is to be used solely in the extraction of minerals under such contract; (iii) the physical construction, reconstruction, or erection of such property is begun by the taxpayer before April 19, 1970, such property is acquired by the taxpayer before April 19, 1970, or such property is constructed, reconstructed, erected, or acquired pursuant to a contract which was, on April 18, 1970, and at all times thereafter, binding on the taxpayer; (iv) such property is placed in service on or before December 31, 1972; (v) such contract is a fixed price contract (except for provisions for price changes under which the loss of the credit allowed by section 38 would not result in a price change); and (vi) such property is not placed in service to replace other property used in extracting minerals under such contract. "(7)

^ 68A70 Stat. 102_^ _ 245; Stat. 402; 80 Stat.I577. ""

68A Stat. 104:

80 Stat. 1576.

CERTAUST TRANSFERS TO BE DISREGARDED.—

" (A) If property or rights under a contract are transferred in— " (i) a transfer by reason of death, "(ii) a transaction as a result of which the basis of the property in the hands of the transferee is determined by reference to its basis in the hands of the transferor by reason of the application of section 332, 351,361,371 (a), 374(a), 721, or 731, or "(iii) 'a sale of substantially all of the assets of the transferor pursuant to the terms of a contract, which was on April 18, 1969, and at all times thereafter, binding on the transferee, and such property (or the property acquired under such contract) would be treated as pre-termination property in the hands of the decedent or the transferor, such property shall be treated as pre-termination property in the hands of the transferee. " (B) If— "(i) property or rights under a contract are acquired in a trausaction to which section 334(b)(2) applies, "(ii) the stock of the distributing corporation was acquired before April 19, 1969, or pursuant to a binding contract in effect April 18, 1969, and "(iii) such property (or the property acquired under such contract) would be treated as pre-termination property in the hands of the distributing corporation, such property shall be treated as pre-termination property in the hands of the distributee. "(8)

PROPERTY ACQUIRED FROM AFFILIATED CORPORATION.—In

the case of property acquired by a corporation which is a member of an affiliated group from another member of the same group— " (A) such corporation shall be treated as having acquired such property on the date on which it was acquired by such other member,

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