Page:United States Statutes at Large Volume 98 Part 1.djvu/1022

 98 STAT. 974 26 USC 440 note.

PUBLIC LAW 98-369—JULY 18, 1984 (3) The amendments made by this subsection shall apply to taxable years ending after December 31, 1979. (e) BASIS ADJUSTMENTS IN PARTNERSHIP INTERESTS AND SUBCHAPTER S STOCK FOR PERCENTAGE DEPLETION.—

26 USC 705.

(1) PARTNERSHIP INTERESTS.—Paragraph (3) of section 705(a)

(relating to determination of basis of partner's interest) is amended to read as follows: "(3) decreased (but not below zero) by the amount of the partner's deduction for depletion for any partnership oil and gas property to the extent such deduction does not exceed the proportionate share of the adjusted basis of such property allocated to such partner under section 613A(c)(7)(D)." (2) SUBCHAPTER

26 USC 1367.

S STOCK.—Subparagraph

(E) of

section

1367(a)(2) (relating to adjustments to basis of stock of shareholders, etc.) is amended to read as follows: "(E) the amount of the shareholder's deduction for depletion for any oil and gas property held by the S corporation to the extent such deduction does not exceed the proportionate share of the adjusted basis of such property allocated to such shareholder under section 613A(c)(13)(B).' (3) EFFECTIVE DATE.—

26 USC 705 note. 26 USC 1367 note.

(A) The amendment made by paragraph (1) shall take effect on January 1, 1975. (B) The amendment made by paragraph (2) shall apply to taxable years beginning after December 31, 1982. (f) CLARIFICATION OF INCREASE IN BASIS FOR GAIN RECOGNIZED ON TRANSFER TO PARTNERSHIP.—

26 USC 722, 723. 26 USC 722 note. 90 Stat. 1922.

(1) IN GENERAL.—Sections 722 and 723 are each amended by striking out "gain recognized" and inserting in lieu thereof "gain recognized under section 721(b)". (2) EFFECTIVE DATE.—The amendments made by paragraph (1) shall take effect as if included in the amendments made by section 2131 of the Tax Reform Act of 1976. (g) AMENDMENTS RELATED TO INCOME TAXES OF CERTAIN MILITARY AND CIVILIAN EMPLOYEES OF THE UNITED STATES DYING AS A RESULT OF INJURIES SUSTAINED OVERSEAS.—

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26 USC 692 note.

(1) EFFECTIVE DATE.—Paragraph (1) of section 1(b) of Public Law 98-259 is amended by striking out "December 31, 1979" and inserting in lieu thereof "November 17, 1978".

26 USC 692. Ante, p. 142. , ^3_.,:.

TIME OF INJURY.—Paragraph (1) of section 692 (relating to certain military and civilian employees of the United States dying as a result of injuries sustained overseas) is amended by striking «3ut "as a result of wounds or injury incurred" and inserting in lieu thereof "as a result of wounds or injury which was incurred while the individual was a military or civilian employee of the United States and which was incurred".

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AGAINST THE UNITED STATES.—Subparagraph (A) of section 692(c)(2) (defining terroristic or military action) is amended to read as follows: "(A) any terroristic activity which a preponderance of the evidence indicates was directed against the United States or any of its allies, and".

(2) REQUIREMENT THAT EMPLOYMENT RELATIONSHIP EXIST AT

(3) CLARIFICATION OF DEFINITION OF TERRORISTIC ACTIVITY

26 USC 692 note.

(4) TREATMENT OF DIRECTOR GENERAL OF MULTINATIONAL FORCE

IN SINAI.—For purposes of section 692(c) of the Internal Revenue Code of 1954, the Director General of the Multinational Force

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