Page:United States Statutes at Large Volume 98 Part 1.djvu/603

 PUBLIC LAW 98-369—JULY 18, 1984

98 STAT. 555

"(B) to any sale or exchange by a person of land used by such person as a farm (within the meaning of section 6420(c)(2)). "(3) LIMITATION.—Paragraph (1) shall apply to any sale or exchange by an individual of his principal residence (within the meaning of section 1034), only to the extent the purchase price of such residence does not exceed $250,000. For purposes of the preceding sentence, the purchase price of a residence shall be determined without regard to this section. "(0 MAXIMUM RATE OF INTEREST ON CERTAIN TRANSFERS OF LAND BETWEEN RELATED PARTIES.—

"(1) IN GENERAL.—In the case of any qualified sale, the discount rate used in determining the total unstated interest rate under subsection 0?) shall not exceed 7 percent, compounded semiannually. "(2) QUALIFIED SALE.—For purposes of this subsection, the term 'qualified sale' means any sale or exchange of land by an individual to a member of such individual's family (within the meaning of section 267(c)(4)). "(3) $500,000 LIMITATION.—Paragraph (1) shall not apply to any qualified sale between individuals made during any calendar year to the extent that the sales price for such sale (when added to the aggregate sales price for prior qualified sales between such individuals during the calendar year) exceeds $500,000. "(4) NONRESIDENT AUEN INDIVIDUALS.—Paragraph (1) shall not apply to any sale or exchange if any party to such sale or exchange is a nonresident alien individual. "(g) REGULATIONS.—The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this section including regulations providing for the application of this section in the case of— "(1) any contract for the sale or exchange of property under which the liability for, or the amount or due date of, a payment cannot be determined at the time of the sale or exchange, or "(2) any change in the liability for, or the amount or due date of, £my payment (including interest) under a contract for the sale or exchange of property, i "(h) CROSS REFERENCE.— "For special rules in the case of the borrower under certain loans for 2 personal use, see section 1275(b)." (c) PENALTY FOR FAILURE TO MEET INFORMATION REQUIREMENTS.—

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Ante, p. 540.

(1) IN GENERAL.—Subchapter B of chapter 68 (relating to assessable penalties) is amended by adding at the end thereof the following new section:

"SEC. 6706. ORIGINAL ISSUE DISCOUNT INFORMATION REQUIREMENTS. "(a) FAILURE TO SHOW INFORMATION ON DEBT INSTRUMENT.—In

the case of a failure to set forth on a debt instrument the information required to be set forth on such instrument under section 1275(c)(l), unless it is shown that such failure is due to reasonable cause and not to willful neglect, the issuer shall pay a penalty of $50 for each instrument with respect to which such a failure exists. "(b) FAILURE TO FURNISH INFORMATION TO SECRETARY.—Any

issuer who fails to furnish information required under section 1275(c)(2) with respect to any issue of debt instruments on the date prescribed therefor (determined with regard to any extension of

26 USC 6706. Penalty. Ante, p. 540. Penalty.

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