Page:United States Statutes at Large Volume 95.djvu/358

 95 STAT. 332

PUBLIC LAW 97-34—AUG. 13, 1981 not exceed an amount equal to the ratable share of the acquisition discount shall be treated as ordinary income. Gain in excess of such amount shall be considered gain from the sale or exchange of a capiteil asset held less than 1 year. "(B) SHORT-TERM GOVERNMENT OBLIGATION.—For purposes of this paragraph, the term 'short-term Government obligation' means any obligation of the United States or any of its possessions, or of a State or any political subdivision thereof, or of the District of Columbia which is issued on a discount basis and payable without interest at a fixed maturity date not exceeding 1 year from the date of issue. Such term does not include any obligation the interest on which is not includible in gross income under section 103 (relating to certain governmental obligations). "(C) ACQUISITION DISCOUNT.—For purposes of this paragraph, the term 'acquisition discount' means the excess of the stated redemption price at maturity over the taxpayer's basis for the obligation. "(D) RATABLE SHARE.—For purposes of this paragraph, the ratable share of the acquisition discount is an amount which bears the same ratio to such discount as— "(i) the number of days which the taxpayer held the obligation, bears to "(ii) the number of days after the date the taxpayer acquired the obligation and up to (and including) the date of its maturity." (c) TECHNICAL AMENDMENTS.—

26 USC 1231. 26 USC 341.

26 USC 1236.

(1) Subparagraph (D) of section 1231(b)(l) is amended by striking out "paragraph (6)" and inserting in lieu thereof "paragraph (5)'. (2) Subparagraph (B) of section 341(c)(2) is amended by striking out "(and governmental obligations described in section 1221(5))". SEC. 506. PROMPT IDENTIFICATION OF SECURITIES BY DEALERS IN SECURITIES. (a) IN GENERAL.—Subsection (a) of section 1236 (relating to dealers in securities) is amended— (1) by striking out "before the expiration of the 30th day after the date of its acquisition" and inserting in lieu thereof before the close of the day on which it was acquired (before the close of the following day in the case of an acquisition before January 1, 1982)", and (2) by striking out "expiration of such 30th day" and inserting in lieu thereof 'xlose of such day". (b) SPECIAL RULE FOR FLOOR SPECIALISTS.—Section 1236 (relating to dealers in securities) is amended by adding at the end thereof the following new subsection: "(d) SPECIAL RULE FOR FLOOR SPECIALISTS.—

"(1) IN GENERAL.—In the case of a floor specialist (but only with respect to acquisitions, in connection with his duties on an exchange, of stock in which the specialist is registered with the exchange), subsection (a) shall be applied— "(A) by inserting 'the 7th business day following' before 'the day the first place it appears in paragraph (1) and by inserting '7th business' before 'day' in paragraph (2), and "(B) by striking the parenthetical phrase in paragraph (1).

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