Page:United States Statutes at Large Volume 94 Part 2.djvu/973

 PUBLIC LAW 96-471—OCT. 19, 1980

94 STAT. 2251

12-month period set forth in section 337(a), then, for pur- 26 USC 337. poses of this section, the receipt of payments under such obligation (but not the receipt of such obligation) by the shareholder shall be treated as the receipt of payment for the stock. "(B) OBLIGATIONS ATTRIBUTABLE TO SALE OF INVENTORY

MUST RESULT FROM BULK SALE.—Subparagraph (A) shall not apply to an installment obligation described in section 337(b)(l)(B) unless such obligation is also described in section 337(b)(2)(B). "(C) SPECIAL RULE WHERE OBLIGOR AND gHAREHOLDER ARE RELATED PERSONS.—If the obligor of any installment obligation and the shareholder are related persons (within the meaning of section 1239(b)), to the extent such installment Post, p. 2255. obligation is attributable to the disposition by the corporation of depreciable property— "(i) subparagraph (A) shall not apply to such obligation, and "(ii) for purposes of this title, all payments to be received by the shareholder shall be deemed received in the year the shareholder receives the obligation. "(D) COORDINATION WITH SUBSECTION (exixA).—For purposes of subsection (e)(l)(A), disposition of property by the corporation shall be treated also as disposition of such property by the shareholder. "(E) SALES BY UQUIDATING SUBSIDIARY.—For purposes of

subparagraph (A), in any case to which section 337(c)(3) 26 USC 337. applies, an obligation acquired in respect of a sale or exchange by the selling corporation shall be treated as so acquired by the corporation distributing the obligation to the shareholder. "(2) DISTRIBUTIONS RECEIVED IN MORE THAN i TAXABLE YEAR OF SHAREHOLDER.—If—

"(A) paragraph (1) applies with respect to any installment obligation received by a shareholder from a corporation, and "(B) by reason of the liquidation such shareholder receives property in more than 1 taxable year, then, on completion of the liquidation, basis previously allocated to property so received shall be reallocated for all such taxable years so that the shareholder's basis in the stock of the corporation is properly allocated among all property received by such shareholder in such liquidation, "(i) REGULATIONS.—

"(1) IN GENERAL.—The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the provisions of this section. "(2) SELLING PRICE NOT READILY ASCERTAINABLE.—The regula-

tions prescribed under paragraph (1) shall include regulations providing for ratable basis recovery in transactions where the gross profit or the total contract price (or both) cannot be readily ascertained. •SEC. 453A. INSTALLMENT METHOD FOR DEALERS IN PERSONAL 26 USC 453A. PROPERTY. "(a) GENERAL RULE.—

"(1) IN GENERAL.—Under regulations prescribed by the Secretary, a person who regularly sells or otherwise disposes of personal property on the installment plan may return as income

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