Page:United States Statutes at Large Volume 98 Part 1.djvu/717

 PUBLIC LAW 98-369—JULY 18, 1984

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98 STAT. 669

"(2) engaged (or holding itself out as being engaged) primarily in the business of investing, reinvesting, or trading in— "(A) securities (as defined in section 2(a)(36) of the Investment Company Act of 1940, as amended), 15 USC 80a-2. "(B) commodities, or "(C) any interest (including a futures or forward contract or option) in property described in subparagraph (A) or (B), at a time when 50 percent or more of the total combined voting power of all classes of stock entitled to vote, or the total value of all classes of stock, was held directly (or indirectly through applying paragraphs (2) and (3) of section 958(a) and paragraph (4) of section 318(a)) by United States persons (as defined in section 7701(a)(30))." (b) EFFECTIVE DATES.—

26 USC 1246

(1) IN GENERAL.—Except as provided in paragraph (2), the note. amendment made by subsection (a) shall apply to sales and exchanges (and distributions) on or after September 29, 1983, in .;> taxable years ending on or after such date. (2) STOCK HELD ON SEPTEMBER 29, 1983.—In the case of a sale or exchange (or distribution) not later than the date which is 1 year after the date of the enactment of this Act, the amendment made by subsection (a) shall not apply with respect to stock held by the taxpayer continuously from September 29, 1983, to the date of such sale or exchange (or distribution). SEC. 135. APPLICATION OF COLLAPSIBLE CORPORATION RULES TO FOREIGN CORPORATIONS. (a) IN GENERAL.—Subsection (f) of section 341 (relating to collapsi- 26 USC 341. ble corporations) is amended by adding at the end thereof the following new paragraph:  ^y "(8) SPECIAL RULE FOR FOREIGN CORPORATIONS.—Except to the

extent provided in regulations prescribed by the Secretary— "(A) any consent given by a foreign corporation under paragraph (1) shall not be effective, and "(B) paragraph (3) shall not apply if the transferee is a foreign corporation." (b) EFFECTIVE DATE.—The amendment made by subsection (a) 26 USC 341 note, shall take effect on the date of the enactment of this Act. SEC. 136. STAPLED STOCK; STAPLED ENTITIES. (a) GENERAL RULE.—Part IX of subchapter B of chapter 1 is amended by inserting after section 269A the following new section: "SEC. 269B. STAPLED ENTITIES. "(a) GENERAL RULE.—Except as otherwise provided by regulations, for purposes of this title— "(1) if a domestic corporation and a foreign corporation are stapled entities, the foreign corporation shall be treated as a Bi- domestic corporation. "(2) in applying section 1563, stock in a second corporation which constitutes a stapled interest with respect to stock of a first corporation shall be treated as owned by such first corporation, and "(3) in applying subchapter M for purposes of determining whether any stapled entity is a regulated investment company or a real estate investment trust, all entities which are stapled entities with respect to each other shall be treated as 1 entity.

26 USC 269B.

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