PUBLIC LAW 100-647—NOV. 10, 1988
102 STAT. 3605
(3)(A) Paragraph (2) of section 1503(e) of the 1986 Code is amended by adding at the end thereof the following new subparagraph: "(C) APPLICATION OF SECTION 312 (n)(7) NOT AFFECTED.—
The reference in paragraph (1) to subsection (n) of section 312 shall be treated sis not including a reference to paragraph (7) of such subsection." (B) Subsection (e) of section 301 of the 1986 Code (as redesignated by section 106(e)(12) of this Act) is amended by redesignating paragraph (3) as paragraph (4) and by inserting after paragraph (2) the following new paragraph: "(3) APPLICATION OF SECTION 312 (n)(7) NOT AFFECTED.—The
reference in paragraph (1) to subsection (n) of section 312 shall be treated as not including a reference to paragraph (7) of such siibsficiiioii (4) Subparagraph (B) of section 10222(b)(2) of the Revenue Act of 1987 is amended to read as follows: 26 USC 301 note. "(B) EXCEPTION.—The amendment made by paragraph (1) shall not apply for purposes of determining gain or loss on any disposition of stock after December 15, 1987, and before January 1, 1989, if such disposition is pursuant to a written binding contract, governmental order, letter of intent or preliminary agreement, or stock acquisition agreement, in effect on or before December 15, 1987." (k) AMENDMENTS RELATED TO SECTION 10223 OF THE ACT.— (1) Subparagraph (D) of section 3550)X2) of the 1986 Code is amended by striking out clauses (i) and (ii) and inserting in lieu thereof the following: "(i) was not acquired by any distributee corporation directly (or through 1 or more corporations, whether through the distributing corporation or otherwise) within the period described in subparagraph (B) and was not acquired by the distributing corporation directly (or through 1 or more corporations) within such period, or "(ii) was so acquired by any such corporation within such period, but, in each case in which such control was so acquired, it was so acquired, only by reason of transactions in which gain or loss was not recognized in whole or in part, or only by reason of such transactions combined with acquisitions before the beginning of such 1361*iod '*
(2) Subparagraph (A) of section 304(b)(4) of the 1986 Code is amended by striking out "stock of 1 member" and inserting in lieu thereof "stock from 1 member". (3) Paragraph (2) of section 10223(d) of the Revenue Act of 1987 is amended by adding at the end thereof the following new subparagraph: "(D)
TREATMENT OF CERTAIN MEMBERS OF AFFIUATED
GROUP.—
"(i) IN GENERAL.—For purposes of subparagraph (A), all corporations which were in existence on the designated date and were members of the same affiliated group which included the distributees on such date shall be treated as 1 distributee. "(ii)
LIMITATION
TO STOCK HELD ON DESIGNATED
DATE.—Clause (i) shall not exempt any distribution
26 USC 304 note.
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