Page:United States Statutes at Large Volume 98 Part 1.djvu/692

 98 STAT. 644

PUBLIC LAW 98-369—JULY 18, 1984 "(F) DETERMINATION OF YEAR TO WHICH AMOUNT IS ATTRIB-



UTABLE.—For purposes of determining whether an amount is attributable to a taxable year of a designated payor corporation— "(i) any amount includible in gross income under section 551 or 951 in respect of such taxable year, "(ii) any interest paid or accrued by such corporation during such taxable year, and "(iii) any dividend paid out of the earnings and profits of such corporation for such taxable year, shall be treated as attributable to such taxable year. "(G) ORDERING RULES.—Subparagraph (A) shall be applied to amounts described therein in the order in which such amounts are described in subparagraph (F). "(H) DIVIDEND.—For purposes of this paragraph, the term 'dividend' includes— "(i) any amount includible in gross income under section 551 or 951, and "(ii) any gain treated as ordinary income under section 1246 or as a dividend under section 1248. "(I) DISTRIBUTIONS THROUGH OTHER ENTITIES.—The Secretary shall prescribe such regulations as may be necessary to carry out the purposes of this paragraph in the case of distributions or payments through 1 or more entities. "(J)

INTEREST

FROM

MEMBERS

OF

SAME

AFFILIATED

GROUP.—For purposes of this paragraph, interest received or accrued by the designated payor corporation from another member of the same affiliated group (determined under section 1504 without regard to subsection (b)(3) thereof) shall not be treated as separate limitation interest, unless such interest is attributable directly or indirectly to separate limitation interest of such other member." 26 USC 904 note.

(b) EFFECTIVE D A T E. —

(1) IN GENERAL.—The amendment made by subsection (a) shall take effect on the date of the enactment of this Act. (2) SPECIAL RULES FOR INTEREST INCOME.—

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(A) IN GENERAL.—Interest income received or accrued by a designated payor corporation shall be taken into account for purposes of the amendment made by subsection (a) only in taxable years beginning after the date of the enactment of this Act. (B) EXCEPTION FOR INVESTMENT AFTER JUNE 22, 1984.— Notwithstanding subparagraph (A), the amendment made by subsection (a) shall apply to interest income received or accrued by a designated payor corporation after the date of enactment of this Act if it is attributable to investment in the designated payor corporation after June 22, 1984. (3) TERM OBLIGATIONS OF DESIGNATED PAYOR CORPORATION WHICH IS NOT APPLICABLE CFC.—In the case of any designated

Ante, p. 638.

26 USC 864.

payor corporation which is not an applicable CFC (as defined in section 121(b)(2)(D)), any interest received or accrued by such corporation on a term obligation held by such corporation on March 7, 1984, shall not be taken into account. SEC. 123. TREATMENT OF RELATED PERSON FACTORING INCOME. (a) GENERAL RULE.—Section 864 (relating to source definitions) is amended by adding at the end thereof the following new subsection:

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