Page:United States Statutes at Large Volume 95.djvu/228

 95 STAT. 202

PUBLIC LAW 97-34—AUG. 13, 1981 SEC. 126. MAXIMUM RATE OF IMPUTED INTEREST FOR SALE OF LAND BETWEEN RELATED PERSONS.

26 USC 483.

(a) GENERAL RULE.—Section 483 (relating to interest on certain

deferred payments) is amended by adding a t the end thereof the following new subsection: "(g) MAXIMUM RATE OF INTEREST ON CERTAIN TRANSFERS OF LAND BETWEEN RELATED PARTIES.—

26 USC 483 ^°^-

26 USC 162.

"(1) IN GENERAL.—In the case of any qualified sale, the maximum interest rate used in determining the total unstated interest rate under the regulations under subsection (b) shall not exceed 7 percent, compounded semiannually. "(2) QUALIFIED SALE.—For purposes of this subsection, the term 'qualified sale' means any sale or exchange of land by an individual to a member of such individual's family (within the meaning of section 267(c)(4)). "(3) $500,000 UMiTATiON.—Paragraph (1) shall not apply to any qualified sale between individuals made during any calendar year to the extent that the sales price for such sale (when added to the aggregate sales price for prior qualified sales between such individuals during the calendar year) exceeds $500,000. "(4) NONRESIDENT AUEN INDIVIDUALS.—This section shall not apply to any sale or exchange if any party to such sale or exchange is a nonresident alien individual." (b) EFFECTIVE DATE.—The amendment made by subsection (a) shall apply to pa5ntnents made after June 30, 1981, pursuant to sales or exchanges after such date. SEC. 127. STATE LEGISLATORS TRAVEL EXPENSES AWAY FROM HOME. (a) IN GENERAL.—Section 162 (relating to trade or business expenses) is amended by redesignating subsection (h) as subsection (i) and by inserting after subsection (g) the following new subsection: "(h) STATE LEGISLATORS' TRAVEL EXPENSES AWAY FROM HOME.—

"(1) IN GENERAL.—For purposes of subsection (a), in the case of any individual who is a State legislator a t any time during the taxable year and who makes an election under this subsection for the taxable year— "(A) the place of residence of such individual within the legislative district which he represented shall be considered his home, "(B) he shall be deemed to have expended for living expenses (in connection with his trade or business as a legislator) an amount equal to the sum of the amounts determined by multiplying each legislative day of such individual during the taxable year by the greater of^ "(i) the amount generally allowable with respect to such day to employees of the State of which he is a legislator for per diem while away from home, to the extent such amount does not exceed 110 percent of the amount described in clause (ii) with respect to such day, or "(ii) the amount generally allowable with respect to such day to employees of the executive branch of the Federal Government for per diem while away from home but serving in the United States, and "(C) he shall be deemed to be away from home in the pursuit of a trade or business on each legislative day.

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