Page:United States Statutes at Large Volume 94 Part 3.djvu/748

 94 STAT. 3392

PUBLIC LAW 96-589—DEC. 24, 1980 "(4) QUALIFIED BUSINESS INDEBTEDNESS.—Indebtedness of the

Post, p. 3394.

taxpayer shall be treated as qualified business indebtedness if (and only if)— "(A) the indebtedness was incurred or assumed— "(i) by a corporation, or "(ii) by an individual in connection with property used in his trade or business, and "(B) such taxpayer makes an election under this paragraph with respect to such indebtedness. "(5) DEPRECIABLE PROPERTY.—The term 'depreciable property' has the same meaning as when used in section 1017. "(6) SUBSECTIONS (a), (b), AND (C) TO BE APPLIED AT PARTNER

LEVEL.—In the case of a partnership, subsections (a), (b), and (c) shall be applied at the partner level. "(7) REDUCTIONS OF TAX ATTRIBUTES IN TITLE i i CASES OF

11 USC 701 etseq., 1101 ^ *^* Post, p. 3397. Post, p. 3394.

INDIVIDUALS TO BE MADE BY ESTATE.—In any case under chapter 7 or 11 of title 11 of the United States Code to which section 1398 applies, for purposes of paragraphs (1) and (5) of subsection (b) the estate (and not the individual) shall be treated as the taxpayer. The preceding sentence shall not apply for purposes of applying section 1017 to property transferred by the estate to the individual. "(8) TIME FOR MAKING ELECTION, ETC.—

"(A) TIME.—An election under paragraph (4) of this subsection or under paragraph (5) of subsection (b) shall be made on the taxpayer s return for the taxable year in which the discharge occurs or at such other time as may be permitted in regulations prescribed by the Secretary. "(B)

REVOCATION ONLY WITH

CONSENT.—An

election

referred to in subparagraph (A), once made, may be revoked only with the consent of the Secretary. "(C) MANNER.—An election referred to in subparagraph (A) shall be made in such manner as the Secretary may by regulations prescribe.

11 USC 101

e^ s^9-

"(9) CROSS REFERENCE.— "For provision that no reduction is to be made in the basis of exempt property of an individual debtor, see section 1017(c)(1). "(e) GENERAL RULES FOR DISCHARGE O F INDEBTEDNESS (INCLUDING DISCHARGES N O T I N TITLE U CASES OR INSOLVENCY).—For purposes of

this title— "(1) No OTHER INSOLVENCY EXCEPTION.—Except as Otherwise provided in this section, there shall be no insolvency exception from the general rule that gross income includes income from the discharge of indebtedness. "(2) INCOME NOT REALIZED TO EXTENT OF LOST DEDUCTIONS.—No

income shall be realized from the discharge of indebtedness to the extent that payment of the liability would have given rise to a deduction. "(3) ADJUSTMENTS FOR UNAMORTIZED PREMIUM AND DISCOUNT.—

The amount taken into account with respect to any discharge shall be properly adjusted for unamortized premium and unamortized discount with respect to the indebtedness discharged. "(4) ACQUISITION OF INDEBTEDNESS BY PERSON RELATED TO DEBTOR.— "(A) TREATED AS ACQUISITION BY DEBTOR.—For purposes of

determining income of the debtor from discharge of indebtedness, to the extent provided in regulations prescribed by the Secretary, the acquisition of outstanding indebtedness

�