Page:United States Statutes at Large Volume 94 Part 2.djvu/1404

 94 STAT. 2682

PUBLIC LAW 96-499—DEC. 5, 1980 "(B) MEMBERS OF CONTROLLED GROUPS.—For purposes of

26 USC 6655 ^°^-

applying paragraph (2) to any taxable year in the testing period with respect to corporations which are component members of a controlled group of corporations for such taxable year, the $1,000,000 amount specified in paragraph (2) shall be divided among such members under rules similar to the rules of section 1561." (b) TECHNICAL AMENDMENT.—Subsection (e) of section 6655 of such Code is amended by striking out "subsections (h) and (d)" and inserting in lieu thereof "subsections 0)), (d), and (h)". (c) EFFECTIVE DATE.—The amendments made by this section shall apply to taxable years beginning after December 31, 1980.

Foreign

SubtUlc C—TaxatioH of Foreign Investment in United

26 USC 6655.

Investment in

Real Property Tax Act of 1980. 26 USC 1 note.

"^

Stdtes Real Prooerty SEC. 1121. SHORT TITLE.

This subtitle may be cited as the "Foreign Investment in Real Property Tax Act of 1980". SEC. 1122. TAX ON DISPOSITION OF FOREIGN INVESTMENT IN UNITED STATES REAL PROPERTY.

(a) IN GENERAL.—Subpart C of part II of subchapter N of chapter 1 of the Internal Revenue Code of 1954 (relating to miscellaneous provisions with respect to nonresident aliens and foreign corporations) is amended by adding at the end thereof the following new section: 26 USC 897.

"SEC. 897. DISPOSITION OF INVESTMENT IN UNITED STATES REAL PROPERTY. "(a) GENERAL RULE.— "(1) TREATMENT AS EFFECTIVELY CONNECTED WITH UNITED STATES TRADE OR BUSINESS.—For purposes of this title, gain or loss

26 USC 871. 26 USC 882.

of a nonresident alien individual or a foreign corporation from the disposition of a United States real property interest shall be taken into account— "(A) in the case of a nonresident alien individual, under section 871(B)(1), or "(B) in the case of a foreign corporation, under section 882(a)(1), as if the taxpayer were engaged in a trade or business within the United States during the taxable year and as if such gain or loss were effectively connected with such trade or business. "(2) 20-PERCENT MINIMUM TAX ON NONRESIDENT ALIEN INDIVIDUALS.—

26 USC 55.

"(A) IN GENERAL.—In the case of any nonresident alien individual, the amount determined under section 55(a)(1)(A) for the taxable year shall not be less than 20 percent of whichever of the following is the least: "(i) the individual's alternative minimum taxable income (as defined in section 55(b)(1)) for the taxable year, "(ii) the individual's net United States real property gain for the taxable year, or "(iii) $60,000.

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