Page:United States Statutes at Large Volume 98 Part 1.djvu/620

 98 STAT. 572

PUBLIC LAW 98-369—JULY 18, 1984 fii.

then any loss (to the extent not disallowed under subparagraph (B)) on the sale or exchange of such share shall, to the extent of the amount described in clause (i), be treated as a long-term capital loss." (2) DETERMINATION OF HOLDING PERIODS.—Subparagraph (C) of

26 USC 852.

section 852(b)(4) is amended to read as follows: "(C) DETERMINATION OF HOLDING PERIODS.—For purposes

of this paragraph, the rules of paragraphs (3) and (4) of section 246(c) shall apply in determining the period for which the taxpayer held any share of stock; except that for the number of days specified in subparagraph (B) of section 246(c)(3) there shall be substituted— "(i)'6 months'for purposes of subparagraph (A), and "(ii) '30 days' for purposes of subparagraph (B)."

Ante, p. 567.

(3) EXCEPTION FOR LOSSES INCURRED UNDER PERIODIC LIQUIDA-

TION PLANS.—Paragraph (4) of section 852(b) is amended by adding at the end thereof the following new subparagraph: '

' -^'-

"(D) LOSSES INCURRED UNDER A PERIODIC LIQUIDATION

PLAN.—To the extent provided in regulations, subparagraph (A) shall not apply to losses incurred on the sale or exchange of shares of stock in a regulated investment company pursuant to a plan which provides for the periodic liquidation of such shares." (b) REAL ESTATE INVESTMENT TRUST.—Paragraph (7) of section

26 USC 857.

857(b) (relating to loss on sale or exchange of stock in real estate investment trust) is amended to read as follows: "(7) Loss ON SALE OR EXCHANGE OF STOCK HELD 6 MONTHS OR LESS.—

"(A) IN GENERAL.—If—

"(i) subparagraph (B) of paragraph (3) provides that any amount with respect to any share or beneficial interest is to be treated as a long-term capital gain, and "(ii) the taxpayer has held such share or interest for 6 months or less, then any loss on the sale or exchange of such share or interest shall, to the extent of the amount described in clause (i), be treated as a long-term capital loss. "(B) DETERMINATION OF HOLDING PERIOD.—For purposes of

this paragraph, the rules of paragraphs (3) and (4) of section 246(c) shall apply in determining the period for which the taxpayer has held any share of stock or beneficial interest; except that '6 months' shall be substituted for the number of days specified in subparagraph (B) of section 246(c)(3).

Ante, p. 567.

"(C) EXCEPTION FOR LOSSES INCURRED UNDER PERIODIC LIQUIDATION PLANS.—To the extent provided in regulations,

subparagraph (A) shall not apply to any loss incurred on the sale or exchange of shares of stock of, or beneficial v i interest in, a real estate investment trust pursuant to a ^ plan which provides for the periodic liquidation of such shares or interests." (c) EFFECTIVE DATE.—The amendments made by this section shall apply to losses incurred with respect to shares of stock and beneficial interests with respect to which the taxpayer's holding period begins after the date of the enactment of this Act.

. >; OHi- f ^ « '.. 26 USC 852 note.

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