Page:United States Statutes at Large Volume 98 Part 1.djvu/606

 98 STAT. 558

PUBLIC LAW 98-369—JULY 18, 1984 SEC. 43. TECHNICAL AND CONFORMING AMENDMENTS RELATED TO TREATMENT OF MARKET DISCOUNT AND ACQUISITION DISCOUNT. (a) DEFINITION OF SUBSTITUTED BASIS PROPERTY; ETC.—

97 Stat. 379. 26 USC 7701.

26 USC 1016. 26 USC 7805.

(1) IN GENERAL.—Section 7701(a) (relating to definitions) is amended by adding at the end thereof the following new paragraphs: "(42) SUBSTITUTED BASIS PROPERTY.—The term 'substituted basis property' means property which is— "(A) transferred basis property, or "(B) exchanged basis property. "(43) TRANSFERRED BASIS PROPERTY.—The term 'transferred basis property' means property having a basis determined under any provision of subtitle A (or under any corresponding provision of prior income tax law) providing that the basis shall be determined in whole or in part by reference to the basis in the hands of the donor, grantor, or other transferor. "(44) EXCHANGED BASIS PROPERTY.—The term 'exchanged basis property' means property having a basis determined under any provision of subtitle A (or under any corresponding provision of prior income tax law) providing that the basis shall be determined in whole or in part by reference to other property held at any time by the person for whom the basis is to be determined. "(45) NoNRECOGNiTioN TRANSACTION.—The term 'nonrecognition transaction' means any disposition of property in a transaction in which gain or loss is not recognized in whole or in part for purposes of subtitle A." (2) TECHNICAL AMENDMENT.—Subsection (b) of section 1016 is amended by striking out the last sentence. (b) ELECTIONS M A D E IN MANNER PRESCRIBED BY SECRETARY.—

Section 7805 (relating to rules and regulations) is amended by adding at the end thereof the following new subsection: "(d) MANNER OF MAKING ELECTIONS PRESCRIBED BY SECRETARY.—

Except to the extent otherwise provided by this title, any election under this title shall be made at such time and in such manner as the Secretary shall by regulations or forms prescribe." (c) OTHER TECHNICAL AMENDMENTS.—

26 USC 341. 26 USC 453B. 26 USC 751.

Ante, p. 547. Ante, p. 549.

(1) Paragraph (12) of section 341(e) (related to nonapplication of section 1254(a)) is amended by striking out "and 1254(a)" and inserting in lieu thereof "1254(a), and 1276(a)". (2) Paragraph (2) of section 453B(d) (relating to liquidations to which section 337 applies) is amended by striking out "or 1254(a)" and inserting in lieu thereof "1254(a), or 1276(a)". (3) Subsection (c) of section 751 (defining unrealized receivables) is amended by adding at the end thereof the following new sentence: "For purposes of this section and sections 731, 736, and 741, such term also includes any market discount bond (as defined in section 1278) and any short-term obligation (as defined in section 1283) but only to the extent of the amount which would be treated as ordinary income if (at the time of the transaction described in this section or section 731, 736, or 741, as the case may be) such property had been sold by the partnership."

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