Page:United States Statutes at Large Volume 98 Part 1.djvu/609

 PUBLIC LAW 98-369—JULY 18, 1984 V ^*i' •'

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98 STAT. 561

(a) the excess of the cash basis income over the accrual basis income, over (b) one-fifth of the net adjustments, multiplied by 5 minus the number of years remaining in the spread period (not including the current year). The excess described in subparagraph (B)(ii)(II)(a) shall be reduced by any amount taken into account under this subclause or clause (i)(II) in any prior

(C) SPREAD PERIOD.—For purposes of this paragraph, the term "spread period" means the period consisting of the 5 taxable years beginning with the year for which the election is made under paragraph (1), (D) CASH BASIS INCOME.—For purposes of this paragraph, the term "cash basis income" means for any taxable year the aggregate amount which would be includible in the gross income of the taxpayer with respect to short-term obligations described in subsection (b) of section 1281 of such Code if the provisions of section 1281 of such Code did not apply to such taxable year and all prior taxable years within the spread period. (E) ACCRUAL BASIS INCOME.—For purposes of this paragraph, the term "accrual basis income" means for any taxable year the aggregate amount includible in gross income under section 1281(a) of such Code for such a taxable year and all prior taxable years within the spread period.

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Ante, p. 548.

(f) TREATMENT OF ORIGINAL ISSUE DISCOUNT ON TAX-EXEMPT OBLI-

GATIONS.—Section 1288 of such Code (as added by section 41) shall apply to obligations issued after September 3, 1982, and acquired after March 1, 1984. (g) REPEAL OF CAPITAL ASSET REQUIREMENT.—Section 1272 of such Code (as added by section 41) shall not apply to any obligation issued before December 31, 1984, which is not a capital asset in the hands of the taxpayer. (h) REPORTING REQUIREMENTS.—Section 1275(c) of such Code (as added by section 41) and the amendments made by section 41(c) shall take effect on the day 30 days after the date of the enactment of this Act.

Ante, p. 553.

Ante, p. 533. Ante, p. 540. Ante, p. 531.

(i) OTHER MISCELLANEOUS CHANGES.— (1) ACCRUAL PERIOD.—In the case

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of any obligation issued after July 1, 1982, and before January 1, 1985, the accrual period, for purposes of section 1272(a) of the Internal Revenue Code of 1954 (as amended by section 41(a)), shall be a 1-year period (or shorter period to maturity) beginning on the day in the calendar year which corresponds to the date of original issue of the obligation. (2)

Ante, p. 533.

CHANGE IN REDUCTION FOR PURCHASE AFTER ORIGINAL

ISSUE.—Section 1272(a)(6) of such Code (as so amended) shall not apply to any purchase on or before the date of the enactment of this Act, and the rules of section 1232A(a)(6) of such Code (as in effect on the day before the date of the enactment of this Act) shall continue to apply to such purchase. (j) CLARIFICATION THAT PRIOR EFFECTIVE DATE RULES NOT AF-

FECTED.—Nothing in the amendment made by section 41(a) shall affect the application of any effective date provision (including any

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Ante, p. 531.

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