Page:United States Statutes at Large Volume 94 Part 3.djvu/909

 PUBLIC LAW 96-608—DEC. 28, 1980

94 STAT. 3553

have the provisions of section 274(h) of the Internal Revenue Code of 1954 be applied to such convention, seminar or meeting without ^«^e, p. 3552. regard to such amendment. SEC. 5. TAXES ON SELF-DEALING IN THE CASE OF CERTAIN LEASES.

Section 4941(d)(2) of the Internal Revenue Code of 1954 (relating to 26 USC 4941. special rules in the case of self-dealing) is amended— (1) by striking out "and" at the end of subparagraph (F); (2) by striking out the period at the end of subparagraph (G) and inserting a semicolon and "and"; and (3) by adding at the end thereof the following: "(H) the leasing by a disqualified person to a private foundation of office space for use by the foundation in a building with other tenants who are not disqualified persons shall not be treated as an act of self-dealing if— "(i) such leasing of office space is pursuant to a binding lease which was in effect on October 9, 1969, or pursuant to renewals of such a lease; "(ii) the execution of such lease was not a prohibited transaction (within the meaning of section 503(b) or any 26 USC 503. corresponding provision of prior law) at the time of such execution; and "(iii) the terms of the lease (or any renewal) reflect an arm's-length transaction." SEC. 6 TREATMENT OF CERTAIN INDEBTEDNESS INCURRED BEFORE 1965 . FOR PURPOSES OF SECTION 514. (a) GENERAL RULE.—For purposes of applying section 514 of the

Internal Revenue Code of 1954 with respect to any sale of real 26 USC 514. property during 1976, indebtedness incurred before January 1, 1965, by an organization to finance the construction of a building on such property shall not be treated as acquisition indebtedness if the parcel of real property on which such building was constructed— (1) was acquired by such organization before January 1, 1952, and (2) is contiguous to another parcel of real property which— (A) was acquired by such organization before January 1, 1952, and

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