Page:United States Statutes at Large Volume 96 Part 2.djvu/330

 96 STAT. 1692 26 USC 6245.

PUBLIC LAW 97-354—OCT. 19, 1982

"SEC. 6245. SUBCHAPTER S ITEM DEFINED.

"For purposes of this subchapter, the term 'subchapter S item' means any item of an S corporation to the extent regulations prescribed by the Secretary provide that, for purposes of this subtitle, such item is more appropriately determined at the corporate level than at the shareholder level." (b) CLERICAL AMENDMENT.—The table of subchapters for chapter 63 is amended by adding at the end thereof the following new item: "SUBCHAPTER D. Tax treatment of subchapter S items."

SEC. 5. TECHNICAL AND CONFORMING AMENDMENTS.

26 USC 44D.

(a) TECHNICAL AMENDMENTS.— (1) SECTION 44D (d)(9).—Paragraph

(9) of section 44D(d) (relating to pass-thru in the case of subchapter S corporations, etc.) is amended to read as follows: "(9) PASS-THRU IN THE CASE OF ESTATES AND TRUSTS.—Under

26 USC 44E.

regulations prescribed by the Secretary, rules similar to the rules of subsection (d) of section 52 shall apply." (2) SECTION 44E (d)(5).—Paragraph (5) of section 44E(d) (relating to pass-thru in the case of subchapter S corporations, etc.) is amended to read as follows: "(5) PASS-THRU IN THE CASE OF ESTATES AND TRUSTS.—Under

regulations prescribed by the Secretary, rules similar to the rules of subsection (d) of section 52 shall apply." 95 Stat. 241.

26 USC 44F.

(3) SECTION 44F.—

(A) Subparagraph (A) of section 44F(f)(2) (relating to passthru in the case of subchapter S corporations, etc.) is amended to read as follows: "(A) PASS-THRU IN THE CASE OF ESTATES AND TRUSTS.—

26use46.

Ante, p. 1685. 95 Stat. 229.

26 USC 48.

Under regulations prescribed by the Secretary, rules similar to the rules of subsection (d) of section 52 shall apply." (B) Clause (iv) of section 44F(g)(l)(B) is amended by striking out "an electing small business corporation (within the meaning of section 1371(b))" and inserting in lieu thereof "an S corporation". (4) SECTION 46(a)(4).—The second sentence of paragraph (4) of section 46(a) (defining liability for tax) is amended by striking out "section 1378 (relating to tax on certain capital gains of subchapter S corporations)," and inserting in lieu thereof "section 1374 (relating to tax on certain capital gains of S corporations),". (5) SECTION 46(c)(8)(c).—Subparagraph (C) of section 46(c)(8) (relating to special rules for partnerships and subchapter S corporations) is amended by striking out "electing small business corporation (within the meaning of section 1371(b))" and inserting in lieu thereof "S corporation". (6) SECTION 46 (e)(3).—Paragraph (3) of section 46(e) (relating to noncorporate lessors) is amended by striking out "an electing small business corporation (as defined in section 1371)" and inserting in lieu thereof "an S corporation". (7) SECTION 48(e).—Subsection (e) of section 48 (relating to subchapter S corporations) is hereby repealed. (8) SECTION 48 (k)(5KD)(i).—The second sentence of clause (i) of section 48(k)(5)(D) (relating to allocation of direct production costs) is amended by striking out "an electing small business

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