Page:United States Statutes at Large Volume 90 Part 2.djvu/190

 90 STAT. 1658

PUBLIC LAW 94-455—OCT. 4, 1976 the D I S C from the ownership of the trade or business which ( during the base period) produced the export gross receipts of the D I S C. "

26 USC 993.

^ (b)

AMENDMENT o r SECTION 993 (c)(2).—Section 993(c)(2) (relat-

ing to property excluded from export property) is amended— f l) by striking out "or" a t the end of subparagraph (B), and (2) by striking out "under section 611" in subparagraph (C) and inserting in lieu thereof "under section 613 or 613A". (c) AMENDMENTS TO SECTION 993(d).—Section 993(d) (relating to definition of producer's loans) is amended— (1) by inserting in paragraph (1)(C) immediately after "export property", the following: "determined without regard to subparagraph (C) or (D) of subsection (c)(2),". (2) by inserting i n paragraph (2) immediately after "of property which would be export property " the following: "(determined without regard to subparagraph (C) or (D) of subsection (c)(2))". (d) RECAPTURE OF ACCUMULATED D I S C INCOME ON DISPOSITION OF STOCK I N A D I S C OR FORMER D I S C —

26 USC 995.

(1) Section 995(c) is amended to read as follows: "(c)

G A I N ON DISPOSITION OF STOCK I N A D I S C. — " (1) IN GENERAL.—If—

" (A) a shareholder disposes of stock in a D I S C or former D I S C any gain recognized on such disposition shall be included in gross income as a dividend to the extent provided in paragraph (2), " (B) stock of a D I S C or former D I S C is disposed of i n a transaction in which the separate corporate existence of the D I S C or former D I S C is terminated other than by a mere change in place of organization, however effected, any gain realized o n the disposition of such stock in the transaction shall be recognized notwithstanding any other provision of this title to the extent provided in paragraph (2) and to the extent so recognized shall be included in gross income as a dividend, or " (C) a shareholder distributes, sells, or exchanges stock in a D I S C or former D I S C in a transaction to which section 311, 336, or 337 applies, then an amount ec[ual to the excess of the fair market value of such stock over its adjusted basis i n the hands of the shareholder shall, notwithstanding any provision of this title, be included in gross income of the shareholder as a dividend to the extent provided i n paragraph (2). " (2) A M O U N T INCLUDED.—The amounts described in paragraph (1) shall be included i n gross income as a dividend to the extent of the accumulated D I S C income of the D I S C or former D I S C which is attributable to the stock disposed of and which was accumulated in taxable years of such corporation during the period or periods the stock disposed of was held by the shareholder which disposed of such stock." (2)

26 USC 751.

INTEREST I N A PARTNERSHIP HOLDING STOCK I N A DISC.—

The last sentence of section 751(c) (relating to unrealized receivables) is amended— (A) by striking out " ( a s defined in section 617(f)(2)), " and inserting in lieu thereof " ( a s defined in section 617(f) (2), stock in a D I S C (as described in section 9 9 2 (a)), " and (B) by striking out " 6 1 7 (d)(1), 124:5(a)," and inserting in lieu thereof "617(d)(1), 995(c), 1245(a),''.

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