PUBLIC LAW 100-647—NOV. 10, 1988
102 STAT. 3411
"(3) RELATED PERSONS.—For purposes of this subsection, the term 'related persons' has the meaning given to such term by section 1239(b), except that such term shall include 2 or more partnerships having a relationship to each other described in section 707(b)(1)(B)." (B) Section 453(g)(l) of the 1986 Code is amended by striking out "(within the meaning of section 1239(b))". (3) The heading of paragraph (2) of section 642(c) of the Reform Act is amended by striking out "TRADITIONAL" and inserting in lieu thereof "TRANSITIONAL". (j) AMENDMENTS RELATED TO SECTION 643 OF THE REFORM ACT.—
(1)(A) Subsection (e) of section 171 of the 1986 Code is amended to read as follows: "(e) TREATMENT AS OFFSET TO INTEREST PAYMENTS.—Except as
provided in regulations, in the case of any taxable bond— "(1) the amount of any bond premium shall be allocated among the interest payments on the bond under rules similar to the rules of subsection (b)(3), and "(2) in lieu of any deduction under subsection (a), the amount of any premium so allocated to any interest payment shall be applied against (and operate to reduce) the amount of such interest payment. For purposes of the preceding sentence, the term 'taxable bond' means any bond the interest of which is not excludable from gross income." (B) Paragraph (5) of section 1016(a) of the 1986 Code is amended by striking out "allowable pursuant to section 171(a)(1)" and inserting in lieu thereof "allowable pursuant to section 171(a)(l) (or the amount applied to reduce interest payments under section 171(e)(2))". (C) The amendments made by this paragraph shall apply in 26 USC 171 note. the case of obligations acquired after December 31, 1987; except that the taxpayer may elect to have such amendment apply to obligations acquired after October 22, 1986. (2) Paragraph (2) of section 643(b) of the Reform Act is 26 USC 171 note. amended by striking out "issued after" and inserting in lieu thereof "acquired after", (k) AMENDMENTS RELATED TO SECTION 646 OF THE REFORM ACT.—
(1) Paragraph (2) of section 646(b) of the Reform Act is 26 USC 671 note. amended to read as follows: "(2) such entity is exclusively engaged in the leasing of min- Minerals and mining. eral property and activities incidental thereto, and". (2) Paragraph (3) of section 646(b) of the Reform Act is amended by inserting "as of October 22, 1986," after "publicly traded". (3) Subparagraph (A) of section 646(c)(l) of the Reform Act is amended by inserting "before January 1, 1991" after "entity". (4) Paragraph (2) of section 646(c) of the Reform Act is amended to read as follows: "(2) AGREEMENT.—
"(A) IN GENERAL.—The agreement described in this paragraph is a written agreement signed by the board of trustees of the entity which provides that the entity will not acquire any additional property other than property described in subparagraph (B). "(B) PERMISSIBLE ACQUISITIONS.—Property is described in
this paragraph if it is—
Real property. Minerals and mining.
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