Page:United States Statutes at Large Volume 98 Part 1.djvu/727

 PUBLIC LAW 98-369—JULY 18, 1984

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98 STAT. 679

"(A) IN GENERAL.—Except as provided in this paragraph, the term 'investment base' means, with respect to any year, the amount of money and the adjusted basis of other property (reduced by any hability to which such other property jg subject) contributed by the investor as of the close of such year. "(B) CERTAIN BORROWED AMOUNTS EXCLUDED.—For purposes of subparagraph (A), there shall not be taken into account any amount borrowed from any person— "(i) who participated in the organization, sale, or management of the investment, or "(ii) who is a related person (as defined in section 168(e)(4)) to any person described in clause (i), unless such amount is unconditionally required to be repaid by the investor before the close of the year for which the determination is being made.

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"(C) CERTAIN OTHER AMOUNTS INCLUDED OR EXCLUDED.— "(i) AMOUNTS HELD IN CASH EQUIVALENTS, ETC.—No

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amount shall be taken into account under subparagraph (A) which is to be held in cash equivalent or marketable securities. "(ii)

AMOUNTS INCLUDED OR EXCLUDED BY SECRE-

TARY.—The Secretary may by regulation— "(I) exclude from the investment base any ' " = ^ » amount described in subparagraph (A), or "(II) include in the investment base any amount not described in subparagraph (A), if the Secretary determines that such exclusion or inclusion is necessary to carry out the purposes of this section. "(4) SUBSTANTIAL INVESTMENT.—An investment is a substantial investment if— "(A) the aggregate amount which may be offered for sale exceeds $250,000, and "(B) there are expected to be 5 or more investors. "(d) OTHER DEFINITIONS.—For purposes of this section— "(1) TAX SHELTER ORGANIZER.—The term 'tax shelter organizer' means— "(A) the person principally responsible for organizing the, tax shelter, "(B) if the requirements of subsection (a) are not met by a person described in subpargraph (A) at the time prescribed . ^.. therefor, any other person who participated in the organization of the tax shelter, and "(C) if the requirements of subsection (a) are not met by a person described in subparagraph (A) or (B) at the time in" prescribed therefor, any person participating in the sale or management of the investment at a time when the tax shelter was not registered under subsection (a). "(2) YEAR.—The term 'year' means— "(A) the taxable year of the tax shelter, or "(B) if the tax shelter has no taxable year, the calendar year. "(e) REGULATIONS.—The Secretary may prescribe regulations which provide—

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