Page:United States Statutes at Large Volume 98 Part 1.djvu/756

 98 STAT. 708

26 USC 1 et seq.

PUBLIC LAW 98-369—JULY 18, 1984 (1) SUBSECTIONS (a) AND (b)(i).—The amendments made by subsections (a) and (b)(1) shall apply to amounts allowable as deductions under chapter 1 of the Internal Revenue Code of 1954 for taxable years beginning after December 31, 1983. For purposes of the preceding sentence, the allowability of a deduction shall be determined without regard to any disallowance or postponement of deductions under section 267 of such Code. (2) SUBSECTION (b) (OTHER THAN PARAGRAPH (D). —

(A) IN GENERAL.—Except as provided in subparagraph (B), the amendments made by subsection (b) (other than paragraph (1) thereof) shall apply to transactions after December 31, 1983, in taxable years ending after such date. (B) EXCEPTION FOR TRANSFERS TO FOREIGN CORPORATIONS

ON OR BEFORE MARCH 1, 1984.—The amendments made by subsection (b)(2) shall not apply to property transferred to a foreign corporation on or before March 1, 1984. (3) EXCEPTION FOR EXISTING INDEBTEDNESS, ETC.—

(A) IN GENERAL.—The amendments made by this section shall not apply to any amount paid or incurred— (i) on indebtedness incurred on or before September 29, 1983, or (ii) pursuant to a contract which was binding on September 29, 1983, and at all times thereafter before the amount is paid or incurred. (B) TREATMENT OF RENEGOTIATIONS, EXTENSIONS, ETC.—If

any indebtedness (or contract described in subparagraph (A)) is renegotiated, extended, renewed, or revised after September 29, 1983, subparagraph (A) shall not apply to any amount paid or incurred on such indebtedness (oi pursuant to such contract) after the date of such renegoti ation, extension, renewal, or revision. SEC. 175. AMENDMENTS TO SECTION 1239. (a) PATENT APPLICATIONS TREATED AS DEPRECIABLE PROPERTY.—

Post, p. 898.

Section 1239 (relating to gain from sale of depreciable property between certain related taxpayers) is amended by adding at the end thereof the following new subsection: "(e) PATENT APPLICATIONS TREATED AS DEPRECIABLE PROPERTY.—

For purposes of this section, a patent application shall be treated as property which, in the hands of the transferee, is of a character which is subject to the allowance for depreciation provided in section 167." (b) TAXPAYER AND CERTAIN TRUSTS TREATED AS RELATED PER-

26 USC 1239 note.

SONS.—Subsection (b) of section 1239 is amended to read as follows: "(b) RELATED PERSONS.—For purposes of subsection (a), the term 'related persons' means— "(1) a husband and wife, "(2) a person and all entities which are 80-percent owned entities with respect to such person, "(3) a taxpayer and any trust in which such taxpayer (or his spouse) is a beneficiary, unless such beneficiary's interest in the trust is a remote contingent interest (within the meaning of section 318(a)(3)(B)(i))." (c) EFFECTIVE DATE.—The amendments made by this section shall apply to sales or exchanges after March 1, 1984, in taxable years ending after such date.

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