Page:United States Statutes at Large Volume 96 Part 1.djvu/520

 96 STAT. 478

PUBLIC LAW 97-248—SEPT. 3, 1982 the Secretary in a manner consistent with determinations of lower income families under section 8 of the United States Housing Act of 1937 (or if such program is terminated, under such program as in effect immediately before such termination), except that the percentage of median gross income which qualifies as low or moderate income shall be 80 percent."

42 USC 1437f.

(c) CONFORMING AMENDMENTS.—

26 USC 103. 26 USC 103A 26 USC 103 note.

26 USC 103.

(1) Paragraph (4) of section 103(b) is amended by striking out the second sentence thereof. (2) Subsection (k) of section 1104 of the Mortgage Subsidy Bond Tax Act of 1980 is hereby repealed. ^^ ^^ GENERAL.—Except as provided in paragraph (2), the amendments made by this section shall apply to obligations issued after the date of the enactment of this Act. (2) EXCEPTION.—The amendments made by this section shall not apply with respect to any obligation to which the amendments made by section 1103 of the Mortgage Subsidy Bond Tax Act of 1980 do not apply by reason of section 1104 of such Act. PART V—MERGERS AND ACQUISITIONS Subpart A—Changes in Tax Treatment of Partial Liquidations and of Certain Distributions of Appreciated Property SEC. 222. PARTIAL LIQUIDATIONS.

(a) SECTION 331 (WHICH PROVIDES CAPITAL GAIN OR Loss TREATMENT FOR SHAREHOLDERS IN LIQUIDATIONS) LIMITED TO COMPLETE

26 USC 331.

LIQUIDATIONS.—Subsection (a) of section 331 (relating to gain or loss to shareholders in corporate liquidations) is amended to read as follows: "(a)

DISTRIBUTIONS

IN

COMPLETE

LIQUIDATION

TREATED

AS

EXCHANGES.—Amounts received by a shareholder in a distribution in complete liquidation of a corporation shall be treated as in full payment in exchange for the stock." 26 USC 336.

(b) SECTION 336 (WHICH PROVIDES NONRECOGNITION OF GAIN AND Loss ON DISTRIBUTIONS BY LIQUIDATING CORPORATION) LIMITED TO COMPLETE LIQUIDATIONS.—Subsection (a) of section 336 (relating to

distributions of property in liquidation) is amended by striking out "partial or complete liquidation" and inserting in lieu thereof "complete liquidation". (c) DISTRIBUTIONS TO NONCORPORATE SHAREHOLDERS WHICH QUALIFY AS PARTIAL LIQUIDATIONS UNDER EXISTING LAW TREATED AS REDEMPTIONS.—

26 USC 302.

(1) Subsection (b) of section 302 (relating to redemptions treated as exchanges) is amended by redesignating paragraph (4) as paragraph (5) and by inserting after paragraph (3) the following new paragraph: "(4) REDEMPTION FROM NONCORPORATE SHAREHOLDER IN PAR-

TIAL LIQUIDATION.—Subsection (a) shall apply to a distribution if such distribution is— "(A) in redemption of stock held by a shareholder who is not a corporation, and "(B) in partial liquidation of the distributing corporation."

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