Page:United States Statutes at Large Volume 94 Part 3.djvu/881

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PUBLIC LAW 96-000—MMMM. DD, 1980

PUBLIC LAW 96-605—DEC. 28, 1980

94 STAT. 3525

etc., expenses) is amended by inserting after paragraph (9) the following new paragraph: "(10) EXPENSES INCLUDIBLE IN INCOME OF PERSONS WHO ARE NOT

EMPLOYEES.—Expenses paid or incurred by the taxpayer for goods, services, and facilities to the extent that the expenses are includible in the gross income of a recipient of the entertainment, amusement, or recreation who is not an employee of the taxpayer as compensation for services rendered or as a prize or award under section 74. The preceding sentence shall not apply to any amount paid or incurred by the taxpayer if such amount is required to be included (or would be so required except that the amount is less than $600) in any information return filed by such taxpayer under part III of subchapter A of chapter 61 and is not so included." (b) EFFECTIVE DATE.—The amendment made by this section shall apply to any expenses paid or incurred after December 31, 1980, in taxable years ending after such date. SEC. 109. INVESTMENT CREDIT FOR CERTAIN PROPERTY USED IN MARITIME SATELLITE COMMUNICATIONS. (a) GENERAL RULE.—Paragraph (5) of section 48(a) (relating to property used by governmental units) is amended to read as follows: "(5) PROPERTY USED BY GOVERNMENTAL UNITS.—Property used by the United States, any State or political subdivision thereof, any international organization, or any agency or instrumentality of any of the foregoing shall not be treated as section 38 property. For purposes of the preceding sentence, the International Telecommunications Satellite Consortium, the International Maritime Satellite Organization, and any successor organization of such Consortium or Organization shall not be treated as an international organization." (b) EFFECTIVE DATE.—The amendment made by subsection (a) shall apply to taxable years beginning after December 31, 1979. SEC. 110. ACQUISITION INDEBTEDNESS. (a) IN GENERAL.—Section 514(c) of the Internal Revenue Code of 1954 (defining acquisition indebtedness) is amended by adding at the end thereof the following new paragraph: "(9) REAL PROPERTY ACQUIRED BY QUALIFIED TRUST.—For purposes of this section— "(A) IN GENERAL.—Except as provided in subparagraph (B), the term 'acquisition indebtedness' does not include indebtedness incurred by a qualified trust in acquiring or improving any real property. "(B) EXCEPTIONS.—The provisions of subparagraph (A) shall not apply in any case in which— "(i) the acquisition price is not a fixed amount determined as of the date of acquisition; "(ii) the amount of any indebtedness or any other amount payable with respect to such indebtedness, or the time for making any payment of any such amount, is dependent, in whole or in part, upon any revenue, income, or profits derived from such real property; "(iii) the real property is at any time after the acquisition leased by the qualified trust to the person selling such property to such trust or to any person who bears a relationship described in section 267(b) to such person;

79-194

O—81—pt. 3

56: QL3

26 USC 74.

26 USC 6031. 26 USC 274 note.

26 USC 48.

26 USC 38.

26 USC 48 note.

26 USC 514.

Acquisition indebtedness.

26 USC 267.