Page:United States Statutes at Large Volume 94 Part 3.djvu/879

 PUBLIC LAW 96-605—DEC. 28, 1980

94 STAT. 3523

SEC. 104. REVISION OF SOURCE RULES FOR INCOME FROM CERTAIN LEASED AIRCRAFT, VESSELS, AND SPACECRAFT. (a) IN GENERAL.—Subsection (e) of section 861 (relating to election 26 USC 861. to treat income from certain aircraft and vessels as income from sources within the United States) is amended to read as follows: "(e) INCOME FROM CERTAIN LEASED AIRCRAFT, VESSELS, AND SPACECRAFT TREATED AS INCOME FROM SOURCES WITHIN THE UNITED STATES.—

"(1) IN GENERAL.—For purposes of subsection (a) and section 862(a), i f "(A) a taxpayer owning a craft which is section 38 property (or would be section 38 property but for section 48(a)(5)) leases such craft to a United States person, other than a member of the same controlled group of corporations (as defined in section 1563) as the taxpayer, and "(B) such craft is manufactured or constructed in the United States, then all amounts includible in gross income by the taxpayer with respect to such craft for any taxable year ending after the commencement of such lease (whether during or after the period of such lease), including gain from sale, exchange, or other disposition of such craft, shall be treated as income from sources within the United States.

26 USC 862. 26 USC 38. 26 USC 48. 26 USC 1563.

"(2) CERTAIN TRANSFERS INVOLVING CARRYOVER BASIS.—If the

taxpayer transfers or distributes a craft to which paragraph (1) applied and the basis of such craft in the hands of the transferee or distributee is determined by reference to its basis in the hands of the transferor or distributor, paragraph (1) shall continue to apply to such craft in the hands of the transferee or distributee. "(3) CRAFT DEFINED.—For purposes of this subsection, the term 'craft' means a vessel, aircraft, or spacecraft.". (b) EFFECTIVE DATE.—The amendment made by subsection (a) shall 26 USC 861 note. apply to property first leased after the date of the enactment of this Act. SEC. 105. TAXATION OF HOMEOWNERS ASSOCIATIONS. (a) GENERAL RULE.—Subsection (b) of section 528 (relating to tax 26 USC 528. imposed with respect to certain homeowners associations) is amended to read as follows: "(b) TAX IMPOSED.—A tax is hereby imposed for each taxable year on the homeowners association taxable income of every homeowners association. Such tax shall be equal to 30 percent of the homeowners association taxable income.". Ob) EFFECTIVE DATE.—The amendment made by subsection (a) shall 26 USC 528 note. apply to taxable years beginning after December 31, 1980. SEC. 106. TREATMENT OF CERTAIN INCOME OF MUTUAL OR COOPERATIVE ELECTRIC AND TELEPHONE COMPANIES. (a) TREATMENT OF CERTAIN INCOME FOR PURPOSES OF TAX EXEMPT

STATUS.—Paragraph (12) of section 501(c) (relating to list of exempt organizations) is amended— (1) by striking out "(12)" and inserting in lieu thereof "(12)(A)", (2) by striking out the second sentence, and (3) by adding at the end thereof the following new subparagraphs: "(B) In the case of a mutual or cooperative telephone company, subparagraph (A) shall be applied without taking into account any income received or accrued^

26 USC 50i.

�