Page:United States Statutes at Large Volume 92 Part 3.djvu/274

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PUBLIC LAW 95-000—MMMM. DD, 1978

92 STAT. 2906

PUBLIC LAW 95-600—NOV. 6, 1978 '•

26 USC 368

(2) EFFECTIVE DATES.—

"°*^26 USC 368.

26 USC 465

note. 26 USC 465. V

26 USC 465 note.

shall be made as of the time immediately before the transaction instead of with respect to the taxable year referred to in such paragraph (3)."

(A) Except as provided in subparagraphs (B) and (C), the amendments made by paragraph (1) shall apply as if included in section 368(a)(2)(F) of the Internal Revenue Code of 1954 as added by section 2131(a) of the Tax Reform Act of 1976. (B) Clause (viii) of section 368(a)(2)(F) of the Internal Revenue Code of 1954 (as added by paragraph (1)) shall apply only with respect to losses sustained after September 26, 1977. (C) Clause (vii) of section 368(a)(2)(F) of the Internal Revenue Code of 1954 (as added by paragraph (1)) shall apply only with respect to transfers made after September 26, 1977. (k) AT RISK PROVISIONS.— (1) CLERICAL AMENDMENT TO EFFECTIVE DATE.—Subparagraph

(A) of section 204(c)(3) of the Tax Reform Act of 1976 is amended by striking out "section 465(c)(1)(B)" and inserting in lieu thereof "section 465(c)(1)(C)". (2) CLARIFICATION OF SECTION 465(d).—Subsection (d) of section 465 (defining loss for purposes of the at risk provisions) is amended by striking out ' (determined without regard to this section)" and inserting in lieu thereof "(determined without regard to the first sentence of subsection (a))". (3) EFFECTIVE DATE.—The amendments made by this subsection shall take effect on October 4, 1976. (1) AMENDMENTS RELATING TO USE OF ACCRUAL ACCOUNTING FOR FARMING.— (1) AUTOMATIC IO-YEAR ADJUSTMENT PERIOD FOR FARMING CORPORATIONS REQUIRED TO USE ACCRUAL ACCOUNTING.—Paragraph

26 USC 447.

(3) of section 447(f) (relating to coordination with section 481) is amended— (A) by striking out "(except as otherwise provided in such regulations)", and (B) by inserting "(or the remaining taxable years where there is a stated future life of less than 10 taxable years)" after "10 taxable years".

26 USC 447 note.

(2) AUTOMATIC IO-YEAR ADJUSTMENT FOR FARMING SYNDICATES CHANGING TO ACCRUAL ACCOUNTING.—If—

26 USC 464.

26 USC 447.

26 USC 481.

(A) a farming syndicate (within the meaning of section 464(c) of the Internal Revenue Code of 1954) was in existence on December 31, 1975, and (B) such syndicate elects an accrual method of accounting (including the capitalization of preproductive period expenses described in section 447(b) of such Code) for a taxable year beginning before January 1, 1979, then such election shall be treated as having been made with the consent of the Secretary of the Treasury or his delegate and, under regulations prescribed by the Secretary of the Treasury or his delegate, the net amount of the adjustments required by section 481(a) of such Code to be taken into account by the taxpayer in computing taxable income shall be taken into account in each of the 10 taxable years (or the remaining taxable years where there is a stated future life of less than 10 taxable years) beginning with the year of change.