Page:United States Statutes at Large Volume 90 Part 2.djvu/303

 PUBLIC LAW 94-455—OCT. 4, 1976

acquisitions made to evade or avoid income tax) is amended by striking out subsection (c) (relating to presumption in the case of disproportionate purchase price). (39)
 * (38) AMENDMENT OF SECTION 269.—Section 269 (relating to

AMENDMENT OF SECTION

275.—Section 2 7 5 (a)(1)(C)

90 STAT. 1771 26 USC 269.

26 USC 275.

relating to nondeductible taxes) is amended by striking out (", and corresponding provisions of p r i o r revenue laws". ( 40) AMENDMENTS OF SECTION 2 8 1. —

(A) Section 281(d)(1)(A) (relating to definition of terminal railroad corporation) is amended by inserting after " I n t e r s t a t e Commerce Act " the following: " (49 U.S.C. 1 and following)". (B) Section 281 (relating to terminal railroad corporations and their shareholders) is amended by striking out subsection (e) (relating to taxable years ending before October 23, 1962) and by redesignating subsection (f) as subsection (e).

26 USC 281.

(41) AMENDMENT OF SECTION 301.—Section 301 ( r e l a t i n g to dis-

26 USC 301.

tributions of property) is amended by striking out subsection (e) (relating to certain distributions by personal service corporations). (42) AMENDMENTS OF SECTION 311.—

(A) Section 311(d)(1) (relating to appreciated property used to redeem stock) is amended by striking out "then again shall be recognized" and inserting in lieu thereof "then a gain shall be recognized". (B)(i) Section 3 1 1 (d)(2) (relating to exceptions and limitations) is amended by striking out subparagraph (C) (relating to certain distributions before December 1, 1974) and by redesignating subparagraph s (D), (E), (F), and (G) as subparagraphs (C), (D), (E), and (F), respectively. (ii) The amendments made by clause (i) shall apply only with respect to distributions after November 30, 1974. (C) Section 3 1 1 (d)(2)(C), as redesignated by subparagraph (B) of this paragraph, is amended by striking out "26 Stat. 209;" and "38 Stat. 730;".

26 USC 311.

26 USC 311 °°*®-

(43) AMENDMENTS OF SECTION 312.—

(A) Section 3 1 2 (d)(1) (relating to certain distributions of stock and securities) is amended by striking out "this Code" each place it appears and inserting in lieu thereof "this title". (B) Section 312 (relating to earnings and profits) is amended by striking out subsection (h) (relating to personal service corporations) and by redesignating subsections (i) and (j) as subsections (h) and (i), respectively. (C) Subsection (i) of section 312 (relatinfif to distribution of proceeds of certain loans), as redesignated by subparagraph (B) of this paragraph, is amended to read as follows: "(i)

26 USC 312.

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DISTRIBUTION OF PROCEEDS OF L O A N INSURED BY THE UNITED

STATES.—If a corporation distributes property with respect to its stock and if, at the time of distribution— " (1) there is outstanding a loan to such corporation which was made, guaranteed, or insured by the United States (or by any agency or instrumentality thereof), and " (2) the amount of such loan so outstanding exceeds the adjusted basis of the property constituting security for such loan, then the earnings and profits of the corporation shall be increased by

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