Page:United States Statutes at Large Volume 98 Part 1.djvu/587

 PUBLIC LAW 98-369—JULY 18, 1984 "(3) TESTING AMOUNT.—For purposes of this section, the term 'testing amount' means, with respect to any debt instrument, the imputed principal amount of such debt instrument which would be determined under subsection (b) (including paragraph (3) thereof) if a discount rate equal to 110 percent of the applicable Federal rate were used. "(4) EXCEPTIONS.—This section shall not apply to— "(A) SALES FOR LESS THAN $1,000,000 OF FARMS BY INDIVID-

98 STAT. 539 •«

UALS O SMALL BUSINESSES.— R

"(i) IN GENERAL.—Any debt instrument arising from the sale or exchange of a farm (within the meaning of section 6420(c)(2))— "(I) by an individual, estate, or testamentary

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"(II) by a corporation which as of the date of the sale or exchange is a small business corporation (as f.ib i''>('L defined in section 1244(c)(3)), or "(III) by a partnership which as of the date of the . *( 1:/ sale or exchange meets requirements similar to those of section 1244(c)(3). i'-u/i. !^ "(ii) $1,000,000 LIMITATION.—Clause (i) shall apply only if it can be determined at the time of the sale or ^ exchange that the sales price cannot exceed $1,000,000. For purposes of the preceding sentence, all sales and u,.. exchanges which are part of the same transaction (or a series of related transactions) shall be treated as 1 sale or exchange. "(B) SALES OF PRINCIPAL RESIDENCES.—Any debt instrument arising from the sale or exchange by an individual of his principal residence (within the meaning of section 1034). "(C) SALES INVOLVING TOTAL PAYMENTS OF $250,000 OR LESS.—

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"(i) IN GENERAL.—Any debt instrument arising from the sale or exchange of property if the sum of the following amounts does not exceed $250,000: "(I) the aggregate amount of the payments due under such debt instrument and all other debt instruments received as consideration for the sale or exchange, and "(II) the aggregate amount of any other consideration to be received for the sale or exchange.

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"(ii) CONSIDERATION OTHER THAN DEBT INSTRUMENT TAKEN INTO ACCOUNT AT FAIR MARKET VALUE.—For pur-

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poses of clause (i), any consideration (other than a debt instrument) shall be taken into account at its fair market value. "(iii) AGGREGATION OF TRANSACTIONS.—For purposes

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of this subparagraph, all sales and exchanges which are part of the same transaction (or a series of related transactions) shall be treated as 1 sale or exchange. "(D) DEBT INSTRUMENTS WHICH ARE PUBLICLY TRADED OR ISSUED FOR PUBLICLY TRADED PROPERTY.—Any debt instru-

ment to which section 1273(b)(3) applies. "(E) CERTAIN SALES OF PATENTS.—In the case of any transfer described in section 1235(a) (relating to sale or exchange of patents), any amount contingent on the productivity, use, or disposition of the property transferred.

Ante, p. 536.

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