96 STAT. 2398
PUBLIC LAW 97-448—JAN. 12, 1983 (b) 80-PERCENT OWNED ENTITY DEFINED.—Subsection (c) of section
26 USC 1239.
1239 (defining 80-percent owned entity) is amended to read as follows: "(c) 80-PERCENT OWNED ENTITY DEFINED.— "(1) GENERAL RULE.—For purposes of this section, the term
'80-percent owned entity' means, with respect to any person— "(A) a corporation 80 percent or more in value of the outstanding stock of which is owned (directly or indirectly) by or for such person, and "(B) a partnership 80 percent or more of the capital interest or profits interest in which is owned (directly or indirectly) by or for such person. "(2) CONSTRUCTIVE OWNERSHIP.—For purposes of subpara-
graphs (A) and (B) of paragraph (1), the principles of section 318 shall apply, except that— "(A) the members of an individual's family shall consist only of such individual and such individual's spouse, "(B) paragraph (2)(C) of section 318(a) shall be applied without regard to the 50-percent limitation contained therein, and "(C) paragraph (3) of section 318(a) shall not apply." SEC. 302. CORRECTION OF CLERICAL ERROR IN SECTION 453B(d)(2).
26 USC 453B.
Paragraph (2) of section 453B(d) (relating to liquidations to which section 337 applies) is amended by striking out "to the extent that under paragraph (1)" and inserting in lieu thereof "to the extent that under subsection (a)". SEC. 303. CLARIFICATION OF INSTALLMENT SALE RULES WITH RESPECT TO LIKE-KIND EXCHANGES.
26 USC 453.
Subparagraph (C) of section 453(fK6) (relating to like-kind exchanges) is amended by inserting ", when used in any provision of this section other than subsection (b)(1)," after "the term 'payment' ". SEC. 304. TECHNICAL CORRECTIONS TO BANKRUPTCY TAX ACT OF 1980. (a) CORRECTION OF CLERICAL ERROR RELATING TO CROSS REFER-
26 USC 443.
ENCE.—The last sentence of subsection (e) of section 443 (relating to returns for a period of less than 12 months) is amended by striking out "section 1398(d)(3)(E)" and inserting in lieu thereof "section 1398(d)(2)(E)". (b) CLARIFICATION OF CERTAIN TRANSFERS OF ASSETS IN SUBPARAGRAPH (G) REORGANIZATIONS.—The last sentence of subparagraph
26 USC 368.
(C) of section 368(a)(2) (relating to special rules relating to definition of reorganization) is amended by striking out "or stock". (c) TRANSFER OF ASSETS IN A 'TITLE 11 OR SIMILAR CASE.—Clause (i)
of section 368(a)(3)(B) (relating to transfer of assets in a title 11 or similar case) is amended by striking out "such corporation" and inserting in lieu thereof "any party to the reorganization". (d) RECAPTURE OF GAIN ON SUBSEQUENT SALE OF STOCK.—Subpara-
26 USC 108.
graph (A) of section 108(e)(7) (relating to recapture of gain on subsequent sale of stock) is amended— (1) by striking out "and" at the end of clause (i), (2) by striking out the period at the end of clause (ii) and inserting in lieu thereof ", and", and (3) by inserting after clause (ii) the following new clause:
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