Page:United States Statutes at Large Volume 111 Part 1.djvu/927

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PUBLIC LAW 105-34—AUG. 5, 1997 111 STAT. 903 (B) that was made after May 31, 1997, and before the date of the enactment of this Act, shall be liquidated or reliquidated as free of duty, and the Secretary of the Treasury shall refund any duty paid with respect to such entry. As used in this subsection, the term "entry" includes a withdrawal from warehouse for consumption. (2) REQUESTS. —L iquidation or reliquidation may be made under paragraph (1) with respect to an entry only if a request therefor is filed with the Customs Service, within 180 days after the date of the enactment of this Act, that contains sufficient information to enable the Customs Service— (A) to locate the entry; or (B) to reconstruct the entry if it cannot be located. TITLE X—REVENUES Subtitle A—Financial Products SEC. 1001. CONSTRUCTIVE SALES TREATMENT FOR APPRECIATED FINANCIAL POSITIONS. (a) IN GENERAL. —Part IV of subchapter P of chapter 1 is amended by adding at the end the following new section: "SEC. 1259. CONSTRUCTIVE SALES TREATMENT FOR APPRECIATED FINANCIAL POSITIONS. "(a) IN GENERAL. —I f there is a constructive sale of an appreciated financial position— "(1) the taxpayer shall recognize gain as if such position were sold, assigned, or otherwise terminated at its fair market value on the date of such constructive sale (and any gain shall be taken into account for the taxable year which includes such date), and "(2) for purposes of applying this title for periods after the constructive sale— "(A) proper adjustment shall be made in the amount of any gain or loss subsequently realized with respect to such position for any gain taken into account by reason of paragraph (1), and "(B) the holding period of such position shall be determined as if such position were originally acquired on the date of such constructive sale. "(b) APPRECIATED FINANCIAL POSITION. —For purposes of this section— "(1) IN GENERAL.— Except as provided in paragraph (2), the term 'appreciated financial position' meeuis any position vidth respect to any stock, debt instrument, or partnership interest if there would be gain were such position sold, assigned, or otherwise terminated at its fair market value. "(2) EXCEPTIONS. —The term 'appreciated financial position' shall not include— "(A) any position with respect to debt if— "(i) the debt unconditionally entitles the holder to receive a specified principal amount, "(ii) the interest payments (or other similar amounts) with respect to such debt meet the requirements of clause (i) of section 860G(a)(l)(B), and