Page:United States Statutes at Large Volume 96 Part 2.djvu/1040

 96 STAT. 2402

PUBLIC LAW 97-448—JAN. 12, 1983 "(i) The term 'separate basket foreign loss' means any foreign loss attributable to activities taken into account (or not taken into account) in determining foreign oil related income (as defined in old section 907(c)(2)). "(ii) An 'old' section is such section as in effect on the day before the date of the enactment of this Act."

Ante, p. 478.

26 USC 302 note.

26 USC 312.

^nte. p-483. 26 USC 311 note.

Ante, p. 485.

(6) AMENDMENTS RELATED TO SECTION 222,—

(A) The last sentence of paragraph (2) of section 222(f) of such Act is amended by inserting ", except that in applying such section both direct and indirect ownership of stock shall be taken into account" before the period at the end thereof. (B)(i) Paragraph (3) of section 312(j) (relating to earnings and profits of foreign investment companies) is amended by striking out "in partial liquidation or". (ii) The heading for paragraph (3) of section 312(j) is amended to read as follows: "(3) REDEMPTIONS.—". (7) AMENDMENT RELATED TO SECTION

223.—Subparagraph (B) ^f section 223(b)(2) of such Act (relating to effective date for changes in tax treatment of distributions of appreciated property in redemption of stock) is amended to read as follows: "(B) either before October 21, 1982, or within 90 days after the date of such ruling." (8) AMENDMENTS RELATED TO SECTION 224.— (A)(i) Subsection (h) of section 338 (relating to definitions and special rules) is amended by adding at the end thereof the following new paragraphs: "(8) TARGET NOT TREATED AS MEMBER OF AFFILIATED GROUP.—

Except as otherwise provided in paragraph (9) or in regulations prescribed under this paragraph, the target corporation shall not be treated as a member of ein affiliated group with respect to the sale described in subsection (a)(D. "(9) ELECTIVE RECOGNITION OF GAIN OR LOSS BY TARGET CORPORATION, TOGETHER WITH NONRECOGNITION OF GAIN OR LOSS ON

STOCK SOLD BY SELLING CONSOUDATED GROUP.— "(A) IN GENERAL.—Under regulations prescribed by the Secretary, an election may be made under which if— "(i) the target corporation was, before the transaction, a member of the selling consolidated group, and "(ii) the target corporation recognizes gain or loss with respect to the transaction as if it sold all of its assets in a single transaction, then the target corporation shall be treated as a member of the selling consolidated group with respect to such sale, and (to the extent provided in regulations) no gain or loss will be recognized on stock sold or exchanged in the transaction by members of the selling consolidated group. "(B) SEIXING CONSOUDATED GROUP.—For purposes of subparagraph (A), the term 'selling consolidated group' means any group of corporations which (for the taxable period which includes the transaction)— "(i) includes the target corporation, and "(ii) files a consolidated return." 26 USC 338 note.

(ii) If—

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