100 STAT. 2366
PUBLIC LAW 99-514—OCT. 22, 1986 "(3) SPECIAL RULES FOR PERSONAL USE PROPERTY.—For purposes of this subsection— "(A) for purposes of paragraph (2)(B), there shall not be taken into account any personal use property (within the meaning of section 1275(b)(3)) held by an individual or any installment obligation arising from the sale of such property, and "(B) for purposes of computing the taxpayer's average quarterly indebtedness under paragraph (1)(A), there shall not be taken into account any indebtedness with respect to which substantially all of the property securing such indebtedness is property described in subparagraph (A). "(4) SPECIAL RULE FOR CASUAL SALES.—If the taxpayer has
no
applicable installment obligations described in subclause (I) or (II) of subsection (e)(l)(A)(i) outstanding at any time during the taxable year, then the taxpayer's allocable installment indebtedness for such taxable year shall be computed by using the taxpayer's indebtedness as of the close of such taxable year in lieu of the taxpayer's average quarterly indebtedness. "(c) TREATMENT OF SUBSEQUENT PAYMENTS.— "(1) PAYMENTS TREATED AS RECEIPT OF TAX PAID AMOUNTS.—If
any amount is treated as received under subsection (a) (after application of subsection (d)(2)) with respect to any applicable installment obligation, subsequent payments received on such obligation shall not be taken into account for purposes of sections 453 and 453A to the extent that the aggregate amount of such subsequent payments does not exceed the aggregate amount treated as received on such obligation under subsection (a). "(2) REDUCTION OF ALLOCABLE INSTALLMENT INDEBTEDNESS.—
For purposes of applying subsection (b)(l)(B) for the taxable year in which any payment to which paragraph (1) of this subsection applies was received (and for any subsequent taxable year), the allocable installment indebtedness with respect to the applicable installment obligation shall be reduced (but not below zero) by the amount of such payment not taken into account by reason of paragraph (1). "(d) LIMITATION BASED ON TOTAL CONTRACT PRICE.—
"(1) IN GENERAL.—The amount treated as received under subsection (a) (after application of paragraph (2)) with respect to any applicable installment obligation for any taxable year shall not exceed the excess (if any) of— "(A) the total contract price, over "(B) any portion of the total contract price received under the contract before the close of such taxable year— "(i) including amounts so treated under subsection (a) for all preceding taxable years (after application of paragraph (2)), but "(ii) not including amounts not taken into account by reason of subsection (c). "(2) EXCESS ALLOCABLE INSTALLMENT INDEBTEDNESS.—If, after application of paragraph (1), the allocable installment indebtedness for any taxable year exceeds the amount which may be allocated to applicable installment obligations arising in (and outstanding as of the close of) such taxable year, such excess shall—
�
