PUBLIC LAW 100-203—DEC. 22, 1987
101 STAT. 1330-411
(1) IN GENERAL.—Paragraph (1) of section 301(f) (relating to special rule for certain distributions received by 20-percent corporate shareholders) is amended by striking out "subsection (n) thereof and inserting in lieu thereof "subsections (k) and (n)
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(2) EFFECTIVE DATES.— 26 USC 30i note. (A) IN GENERAL.—The amendment made by paragraph (1) ^ shall apply to distributions after December 15, 1987. For purposes of applying such amendment to any such distribution— . ^ (i) for purposes of determining earnings and profits, ' such amendment shall be deemed to be in effect for all periods whether before, on, or after December 15, 1987, Q ^ but •J as. (ii) such amendment shall not affect the determination of whether any distribution on or before December 15, 1987, is a dividend and the amount of any reduction in accumulated earnings and profits on account of any >-^b.H.t such distribution. ^"(B) EXCEPTION.—The amendment made by paragraph (1) shall not apply for purposes of determining gain or loss on any disposition described in subsection (a)(2)(B) of this section. SEC. 10223. TREATMENT OF MIRROR SUBSIDIARY TRANSACTIONS. (a) CONSOUDATED RETURN REGULATIONS NOT To APPLY FOR*^* PURPOSES OF NONRECOGNITION UNDER SECTION 337.—Subsection (c)
of section 337 (defining 80-percent distributee) is amended by adding at the end thereof the following new sentence: "For purposes of this section, the determination of whether any corporation is an 80percent distributee shall be made without regard to any consolidated return regulation." (b) AMENDMENT TO SECTION 355.—Subparagraph (D) of section 3550t)X2) (relating to requirements as to active business) is amended— (1) by amending clause (i) to read as follows: "(i) was not acquired by any distributee corporation
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directly (or through 1 or more corporations, whether through the distributing corporation or otherwise) within the period described in subparagraph (B), or", (2) by striking out "by another corporation" in clause (ii) and , inserting in lieu thereof "such distributee corporation", and (3) by adding at the end thereof the following new sentence: "For purposes of subparagraph (D), all distributee corporations which are members of the same affiliated group (as defined in section 1504(a) without regard to section 15040t))) shall be treated as 1 distributee corporation." (c) AMENDMENT TO SECTION 304.—Subsection (b) of section 304 (relating to redemption through use of related corporations) is amended by adding at the end thereof the following new paragraph: "(4) TREATMENT OF CERTAIN INTRAGROUP TRANSACTIONS.—
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"(A) IN GENERAL.—In the case of any transfer described in subsection (a) of stock of 1 member of an affiliated group .^^ to another member of such group, proper adjustments shall be made to— '• Copy read "TO APPLY FOR PURPOSBB".
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