Page:United States Statutes at Large Volume 98 Part 1.djvu/714

 98 STAT. 666, -

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PUBLIC LAW 98-369—JULY 18, 1984 "(c) SPECIAL RULES FOR APPLICATION OF SUBSECTION (a)(2).—For

purposes of the stock ownership requirement provided in section 552(a)(2)— "(1) stock owned by a nonresident alien individual (other than a foreign trust or foreign estate) shall not be considered by reason of so much of subsection (a)(2) as relates to attribution through family membership as owned by a citizen or by a resident alien individual who is not the spouse of the nonresi1 4 >s J:fi, dent individual and who does not otherwise own stock in such corporation (determined after the application of subsection (a), other than attribution through family membership), and "(2) stock of a corporation owned by any foreign person shall not be considered by reason of so much of subsection (a)(2) as relates to attribution through partners as owned by a citizen or resident of the United States who does not otherwise own stock in such corporation (determined after application of subsection (a) and paragraph (1), other than attribution through partners)." 26 USC 551.

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(b) INCLUSION IN INCOME OF UNITED STATES PERSONS HOLDING INTEREST THROUGH FOREIGN ENTITY.—Section 551 (relating to for-

eign personal holding company income taxed to United States shareholders) is amended by redesignating subsection (f) as subsection (g) and by inserting after subsection (e) the following new subsection: "(f) STOCK HELD THROUGH FOREIGN ENTITY.—For purposes of this section, stock of a foreign personal holding company owned (directly or through the application of this subsection) by— "(1) a partnership, estate, or trust which is not a United States shareholder, or "(2) a foreign corporation which is not a foreign personal holding company, shall be considered as being owned proportionately by its partners, beneficiaries, or shareholders. In any case to which the preceding sentence applies, the Secretary may by regulations provide for such adjustments in the application of this part as may be necessary to carry out the purposes of the preceding sentence." (c) COORDINATION OF SUBPART F WITH FOREIGN PERSONAL HOLDING COMPANY PROVISIONS.—

26 USC 951.

(1) IN GENERAL.—Subsection (d) of section 951 (relating to coordination with foreign personal holding company provisions) is amended to read as follows: "(d) COORDINATION WITH FOREIGN PERSONAL HOLDING COMPANY

PROVISIONS.—If, but for this subsection, an amount would be included in the gross income of a United States shareholder for any taxable year both under subsection (a)(l)(A)(i) and under section 551(b) (relating to foreign personal holding company income included in gross income of United States shareholder), such amount shall be included in the gross income of such shareholder only under subsection (a)(1)(A)." 26 USC 552.

(2) CERTAIN DIVIDENDS AND INTEREST NOT TAKEN INTO ACCOUNT FOR PERSONAL HOLDING COMPANY DETERMINATION.—Section 5 5 2

(defining foreign personal holding company) is amended by adding at the end thereof the following new subsection: "(c)

CERTAIN DIVIDENDS AND INTEREST NOT TAKEN INTO AC-

COUNT.—For purposes of subsection (a)(1) and section 553(a)(1), gross income and foreign personal holding company income shall not K' fc ^ ii*i include any dividends and interest which— "(1) are described in subparagraph (A) of section 954(c)(4), and

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