100 STAT. 2278
PUBLIC LAW 99-514—OCT. 22, 1986
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(A) any distribution or sale or exchange made pursuant to a plan of liquidation adopted before August 1, 1986, if the liquidating corporation is completely liquidated before January 1, 1988, (B) any distribution or sale or exchange made by any corporation if 50 percent or more of the voting stock O^y value) of such corporation is acquired on or after August 1, 1986, pursuant to a written binding contract in effect before such date and if such corporation is completely liquidated before January 1, 1988, (C) any distribution or sale or exchange made by any corporation if substantially all of the assets of such corporation are sold on or after August 1, 1986, pursuant to 1 or more written binding contracts in effect before such date and if such corporation is completely liquidated before January 1, 1988, or (D) any transaction described in section 338 of the Internal Revenue Code of 1986 with respect to any target corporation if a qualified stock purchase of such target corporation is made on or after August 1, 1986, pursuant to a written binding contract in effect before such date and the acquisition date (within the meaning of such section 338) is before January 1, 1988. (2) SPECIAL RULE FOR CERTAIN ACTIONS TAKEN BEFORE NOVEM-
BER 20, 1985.—For purposes of paragraph (1), transactions shall be treated as pursuant to a plan of liquidation adopted before August 1, 1986, if— (A) before November 20, 1985— >' (i) the board of directors of the liquidating corporation adopted a resolution to solicit shareholder apit • • proval for a transaction of a kind described in section '•\ ^ 336 or 337, or '^ '^^ ' (ii) the shareholders or board of directors have approved such a transaction,
(B) before November 20, 1985— (i) there has been an offer to purchase a majority of i ••- •" the voting stock of the liquidating corporation, or (ii) the board of directors of the liquidating corpora'•' '• tion has adopted a resolution approving an acquisition or recommending the approval of an acquisition to the shareholders, or (C) before November 20, 1985, a ruling request was "^
submitted to the Secretary of the Treasury or his delegate " * with respect to a transaction of a kind described in section 336 or 337 of the Internal Revenue Code of 1954 (as in effect before the amendments made by this subtitle). For purposes of the preceding sentence, any action taken by the board of directors or shareholders of a corporation with respect to any subsidiary of such corporation shall be treated as taken by the board of directors or shareholders of such subsidiary. (d) TRANSITIONAL RULE FOR CERTAIN SMALL CORPORATIONS.—
(1) IN GENERAL.—In the case of the complete liquidation before January 1, 1989, of a qualified corporation, the amendments made by this section shall not apply to the applicable percentage of each gain or loss which (but for this paragraph) would be recognized by reason of the amendments made by this subtitle.
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