PUBLIC LAW 105-34—AUG. 5, 1997 111 STAT. 941 used predominantly outside the United States are not property of a like kind. "(B) PREDOMINANT USE.— Except as provided in subparagraph (C) and (D), the predominant use of any property shall be determined based on— "(i) in the case of the property relinquished in the exchange, the 2-year period ending on the date of such relinquishment, and "(ii) in the case of the property acquired in the exchange, the 2-year period beginning on the date of such acquisition. "(C) PROPERTY HELD FOR LESS THAN 2 YEARS.—Except in the case of an exchange which is part of a transaction (or series of transactions) structured to avoid the purposes of this subsection— "(i) only the periods the property was held by the person relinquishing the property (or any related person) shall be taken into account under subparagraph (B)(i), and "(ii) only the periods the property was held by the person acquiring the property (or any related person) shall be taken into account under subparagraph (B)(ii). " (D) SPECIAL RULE FOR CERTAIN PROPERTY.— Property described in any subparagraph of section 168(g)(4) shall be treated as used predominantly in the United States.", (b) EFFECTIVE DATE. — 26 USC 1031 (1) IN GENERAL. —The amendment made by this section note. shall apply to transfers after June 8, 1997, in taxable years ending after such date. (2) BINDING CONTRACTS.— The amendment made by this section shall not apply to any transfer pursuant to a written binding contract in effect on June 8, 1997, and at all times thereafter before the disposition of property. A contract shall not fail to meet the requirements of the preceding sentence solely because— (A) it provides for a sale in lieu of an exchange, or (B) the property to be acquired as replacement property was not identified under such contract before June 9, 1997. SEC. 1053. HOLDING PERIOD REQUIREMENT FOR CERTAIN FOREIGN TAXES. (a) IN GENERAL.—Section 901 is amended by redesignating subsection (k) as subsection (1) and by inserting after subsection (j) the following new subsection: "(k) MINIMUM HOLDING PERIOD FOR CERTAIN TAXES.— " (1) WITHHOLDING TAXES. — "(A) IN GENERAL.—In no event shall a credit be allowed under subsection (a) for any withholding tsix on a dividend with respect to stock in a corporation if— "(i) such stock is held by the recipient of the dividend for 15 days or less during the 30-day period beginning on the date which is 15 days before the date on which such share becomes ex-dividend with respect to such dividend, or "(ii) to the extent that the recipient of the dividend is under an obligation (whether pursuant to a short
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