Page:United States Statutes at Large Volume 95.djvu/362

 95 STAT. 336

PUBLIC LAW 97-34—AUG. 13, 1981 an interest that has been transferred after June 9, 1981, in a transfer which— "(i) is described in section 613A(c)(9)(A), and "(ii) is not described in section 613A(c)(9)(B). "(B) EXCEPTIONS.—Subparagraph (A) shall not apply in the case of any transfer so long as the transferor and the transferee are required by paragraph (3) or (4) of subsection (c) to share the $2,500 amount in subsection (c)(1). The preceding sentence shall apply to the case of any property only if the production from the property was qualified royalty production of the transferor. "(C) TRANSFERS INCLUDE SUBLEASES.—For purposes of this paragraph, a subleeise shall be treated as a transfer. "(D) ESTATES.—For purposes of this paragraph, property held by any estate shall be treated as owned both by such estate and proportionately by the beneficiaries of such estate." (5) QUALIFIED FAMILY FARM CORPORATION DEFINED.—Paragraph

26 USC 6429.

Ante, p. 312.

(4) of section 6429(d) is amended to read as follows: "(4) QUALIFIED FAMILY FARM CORPORATION.—The term 'qualified family farm corporation' means a corporation— "(A) all the outstanding shares of stock of which at all times during the calendar year are held by members of the same family (within the meaning of section 2032A(e)(2)), and "(B) 80 percent in value of the assets of which (other than royalty interests described in paragraph (2)(A)) are held by the corporation at all times during such calendar year for use for farming purposes (within the meaning of section 2032A(e)(5))." (6) CONFORMING AMENDMENTS.—

26 USC 6654.

26 USC 6655.

26 USC 31.

(A) Paragraph (3) of section 6654(f) (relating to failure by individuals to pay estimated income tax) is amended to read as follows: "(3) the sum of— "(A) the credits against tax allowed by part IV of subchapter A of chapter 1, other than the credit against tax provided by section 31 (relating to tax withheld on wages), plus "(B) to the extent allowed under regulations prescribed by the Secretary, any amount which is treated under section 6429 as an overpayment of the tax imposed by section 4986." (B) Paragraph (2) of section 6655(e) (relating to failure by corporation to pay estimated income tax) is amended to read as follows: "(2) the sum of— "(A) the credits against tax provided by part IV of subchapter A of chapter 1, plus "(B) to the extent allowed under regulations prescribed by the Secretary, any amount which is treated under section 6429 as an overpayment of the tax imposed by section 4986." (b) EXEMPTION FOR 1982 AND THEREAFTER.—

94 Stat. 235.

(1) IN GENERAL.—Subsection (b) of section 4991 is amended by striking out "and" at the end of paragraph (3), by striking out the period at the end of paragraph (4), and inserting in lieu thereof ", and", and by adding at the end thereof the following new paragraph: "(5) exempt royalty oil."

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