Page:United States Statutes at Large Volume 98 Part 1.djvu/994

 98 STAT. 946

PUBLIC LAW 98-369—JULY 18, 1984 1o sgiife

Ante, p. 943. 26 USC 6405.

income shall be determined without regard to the application of section 1231 of such Code to any gain or loss from an involuntary conversion of property described in subsection (c)(3) of section 165 of such Code arising from fire, storm, shipwreck, or other casualty or from theft. (ii) Section 1231 of such Code shall be applied after the application of paragraph (1) of section 165(h) of such Code. (3) CLERICAL AMENDMENT.—Subsection (d) of section 6405 (relating to refunds attributable to certain disaster losses) is amended by striking out "section 165(h)" and inserting in lieu thereof "section 165(i)". SEC. 712. TECHNICAL CORRECTIONS OF PROVISIONS PRIMARILY RELATING TO BUSINESSES. (a) AMENDMENTS RELATED TO SECTION 204.— (1) CLARIFICATION OF ADDITIONAL AMOUNT TREATED AS ORDINARY INCOME UNDER SECTION 1250.—

26 USC 291.

26 USC 1250.

(A) Paragraph (1) of section 291(a) (relating to section 1250 capital gain treatment) is amended— (i) by striking out "under section 1250" in subparagraph (B) and inserting in lieu thereof "under section 1250 (determined without regard to this paragraph)", and (ii) by striking out "which is ordinary income" and inserting in lieu thereof "which is ordinary income under section 1250". (B) Subsection (a) of section 1250 is amended by adding at the end thereof the following new paragraph: "(4) CROSS REFERENCE.—

"For reduction in the case of corporations on capital gain treatment under this section, see section 291(a)(1)." (2) INVESTMENT TAX CREDIT ALLOWED ONLY FOR MINERAL EXPLORATION AND DEVELOPMENT COSTS FOR DEPOSITS LOCATED IN THE

26 USC 291.

UNITED STATES.—Clause (ii) of section 291(b)(2)(B) is amended by inserting "in the case of a deposit located in the United States,' after "(ii)". (3) CLARIFICATION OF COORDINATION WITH COST DEPLETION.—

Paragraph (6) of section 291(b) (relating to coordination with cost depletion) is amended to read as follows: "(6) COORDINATION WITH COST DEPLETION.—The portion of the

adjusted basis of any property which is attributable to amounts to which paragraph (1) applied shall not be taken into account for purposes of determining depletion under section 611." (4) CLARIFICATION OF DEFINITION OF INTEREST.—Subparagraph

(B) of section 291(e)(1) (relating to interest on debt to carry taxexempt obligations acquired after December 31, 1982) is amended by adding at the end thereof the following new clause: (iii) INTEREST.—For purposes of this subparagraph, the term 'interest' includes amounts (whether or not .sJon.'tii '::a'5 B', designated as interest) paid in respect of deposits, investment certificates, or withdrawable or repurchasable shares." 26 USC 48. (b) AMENDMENT RELATED TO SECTION 205.—Subsection (q) of section 48 (relating to basis adjustment to section 38 property) is ,, amended by adding at the end thereof the following new paragraph:

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