PUBLIC LAW 95-600—NOV. 6, 1978
92 STAT. 2911
(2) EFFECTIVE DATE.—The amendment made by paragraph (1) 26 USC 667 shall apply to distributions made in taxable years beginning "^te. after December 31, 1975. (s) EXEMPT INTEREST DIVIDENDS OF REGULATED INVESTMENT COMPANIES.— (1) TREATMENT OF TAX-EXEMPT INTEREST FOR PURPOSES OF THE
90-PERCENT AND 30-PERCENT TESTS.—Subsection (b) of section 851
26 USC 851.
(relating to limitations on the definition of regulated investment company) is amended by adding at the end thereof the following new sentence: "For purposes of paragraphs (2) and (3), amounts excludable from gross income under section 103(a)(1) shall be 26 USC 103. treated as included in gross income." (2) LOSSES ATTRIBUTABLE TO TAX-EXEMPT INTEREST WHERE STOCK
IS HELD LESS THAN 31 DAYS.—Paragraph (4) of section 852(b)
26 USC 852.
(relating to loss on sale or exchange of stock held less than 31 days) is amended to read as follows: "(4) Loss ON SALE OR EXCHANGE OF STOCK HELD LESS THAN 31 DAYS.—
"(A) Loss ATTRIBUTABLE TO CAPITAL GAIN DIVIDEND.—If— "(i) under subparagraph (B) or (D) of paragraph (3) a shareholder of a regulated investment company is required, with respect to any share, to treat any amount as a long-term capital gain, and "(ii) such share is held by the taxpayer for less than 31 days, then any loss (to the extent not disallowed under subparagraph (B)) on the sale or exchange of such share shall, to the extent of the amount described in clause (i), be treated as a long-term capital loss. "(B) L o s s ATTRIBUTABLE TO EXEMPT-INTEREST DIVIDEND.—
If— "(i) a shareholder of a regulated investment company receives an exempt-interest dividend with respect to any share, and "(ii) such share is held by the taxpayer for less than 31 days, then any loss on the sale or exchange of such share shall, to the extent of the amount of such exempt-interest dividend, be disallowed. "(C) DETERMINATION OF HOLDING PERIODS.—For purposes
of this paragraph, the rules of section 246(c)(3) shall apply in 26 USC 246. determining whether any share of stock.has been held for less than 31 days; except that '30 days' shall be substituted for the number of days specified in subparagraph (B) of section 246(C)(3)." (3) EFFECTIVE DATE.—The amendments made by this section 26 USC 851 shall apply to taxable years beginning after December 31, 1975. note. (t) AMENDMENTS RELATING TO REAL ESTATE INVESTMENT TRUSTS.—
(1) ANNUAL ACCOUNTING PERIOD.—Section 859 (relating to
adoption of annual accounting period), as redesignated by the Act, is further amended to read as follows: "SEC. 859. ADOPTION OF ANNUAL ACCOUNTING PERIOD.
"For purposes of this subtitle— "(1) a real estate investment trust shall not change to any accounting period other than the calendar year, and
26 USC 859.
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