Page:United States Statutes at Large Volume 94 Part 2.djvu/976

 94 STAT. 2254 Ante, p. 2247. Ante, p. 2251. 26 USC 481. 26 USC 644. 26 USC 691.

Ante, p. 2252. 26 USC 1255.

PUBLIC LAW 96-471—OCT. 19, 1980 (B) by Striking out "for purposes of section 453" and inserting in lieu thereof "for purposes of section 453 or 453A". (3) Subsection (d) of section 481 is hereby repealed. (4) Subsection (f) of section 644 is amended by striking out "elects to report income under section 453" and inserting in lieu thereof "reports income under section 453". (5) Paragraph (4) of section 691(a) is amended— (A) by striking out "received by a decedent on the sale or other disposition of property, the income from which was properly reportable by the decedent on the installment basis under section 453" and inserting in lieu thereof "reportable by the decedent on the installment method under section 453 or453A",and (B) by striking out "section 453(d)" each place it appears and inserting in lieu thereof "section 453B", (6) Paragraph (2) of section 1255(b) is amended by striking out "453(d)(4)(B)" and inserting in lieu thereof "453B(d)(2)". (c) CONFORMING AMENDMENTS.—

Ante, p. 304. 26 USC 337. Ante, p. 2252.

Ante, p. 305.

(1) Subsection (a) of section 336 (as amended by the Crude Oil Windfall Profit Tax Act of 1980) is amended by striking out "section 453(d)" and inserting in lieu thereof "section 453B". (2) Paragraph (3) of section 337(f) is amended by striking out "section 453(d)(1)" and inserting in lieu thereof "section 453B(a)". (3) Paragraph (2) of section 453B(d) is amended by adding at the end thereof the following new sentence: "In the case of any installment obligation which would have met the requirements of subparagraphs (A) and (B) of the first sentence of this paragraph but for section 337(f), gain shall be recognized to such corporation by reason of such distribution only to the extent gain would have been recognized under section 337(f) if such corporation had sold or exchanged such installment obligation on the date of such distribution.". (4) Subparagraph (B) of section 403(b)(2) of the Crude Oil Windfall Profit Tax Act of 1980 is hereby repealed. (d) CLERICAL AMENDMENT.—The table of sections for such subpart B is amended by striking out the item relating to section 453 and inserting in lieu thereof the following: "Sec. 453. Installment method. "Sec. 453A. Installment method for dealers in personal property. "Sec. 453B. Gain or loss on disposition of installment obligations.".

26 USC 691.

SEC. 3. COORDINATION WITH SECTION 691.

Subsection (a) of section 691 (relating to income in respect of a decedent) is amended by adding at the end thereof the following new paragraph: "(5) OTHER RULES RELATING TO INSTALLMENT OBLIGATIONS.—

Ante, pp. 2247, 2251.

"(A) IN GENERAL.—In the case of an installment obligation reportable by the decedent on the installment method under section 453 or 453A, for purposes of paragraph (2)— "(i) the second sentence of paragraph (2) shall be applied by inserting '(other than the obligor)' after 'or a transfer to a person', "(ii) any cancellation of such an obligation shall be treated as a transfer, and "(iii) any cancellation of such an obligation occurring at the death of the decedent shall be treated as a transfer by the estate of the decedent (or, if held by a

�