12 2 STA T . 2 9 11 PUBLIC LA W 11 0– 2 8 9 —J UL Y3 0 , 2008 (2)STA T EM E N T .—Par a g ra ph (2) ofsecti o n67 2 4 ( d )is a m ended by stri k ing ‘ ‘or ’ ’attheendofs u bparagraph ( B B) , by striking the period at the end of the subparagraph ( C C) and inserting ‘‘, or’’, and by inserting after subparagraph (CC) the fo l lo w ing
‘‘( D D) section 6 05 0 W (c) (relating to returns relating to payments made in settlement of payment card trans - actions).’’. (c) AP P LIC ATI O NO F BAC KU P WIT H HOL D IN G .—Paragraph ( 3 )of section 3406(b) is amended by striking ‘‘or’’ at the end of subpara- graph (D), by striking the period at the end of subparagraph ( E ) and inserting ‘‘, or’’, and by adding at the end the following new subparagraph: ‘‘( F ) section 6050W (relating to returns relating to pay- ments made in settlement of payment card transactions).’’. (d) CLE R ICAL AMENDMENT.— T he table of sections for subpart B of part I II of subchapter A of chapter 6 1 is amended by inserting after the item relating to section 6050 V the following: ‘ ‘ Sec.605 0 W . R e turns re la t i n g t op a ym ents ma d e in settlement o f payment card transactions. ’ ’. (e) EFFECTI V E DATE.— (1) IN GENERAL.—E x cept as otherwise pro v ided in this sub- section, the amendments made by this section shall apply to returns for calendar years beginning after December 31, 2010. (2) APPLICATION OF B ACKUP W ITHHOLDING.— (A) IN GENERAL.—The amendment made by subsection (c) shall apply to amounts paid after December 31, 2011. (B) ELIGIBILIT Y FOR TIN MATCHING PROGRAM.—Solely for purposes of carrying out any TI N matching program established by the Secretary under section 3406(i) of the Internal R evenue Code of 1 98 6— (i) the amendments made this section shall be treated as taking effect on the date of the enactment of this Act, and (ii) each person responsible for setting the stand- ards and mechanisms referred to in section 6050W(d)(2)(C) of such Code, as added by this section, for settling transactions involving payment cards shall be treated in the same manner as a payment settle- ment entity. SEC.3092 . GAINFROM SA L EOF P RINCIPAL RESI D ENCE ALLOCA T ED TO NON QU ALIFIED USE NOT E X CLUDED FROM INCOME. (a) IN G ENERAL.—Subsection (b) of section 121 of the Internal Revenue Code of 1986 (relating to limitations) is amended by adding at the end the following new paragraph: ‘‘(4) E X CLU S ION OF GAIN ALLOCATED TO NON Q UALIFIED USE.— ‘‘(A) IN GENERAL.—Subsection (a) shall not apply to so much of the gain from the sale or exchange of property as is allocated to periods of non q ualified use. ‘‘(B) GAIN ALLOCATED TO PERIODS OF NONQUALIFIED USE.—For purposes of subparagraph (A), gain shall be allo- cated to periods of nonqualified use based on the ratio which— 26USC340 6 note.
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