124 STAT. 3553 PUBLIC LAW 111–325—DEC. 22, 2010 section 988) and any amount includible in gross income under section 1296(a)(1). ‘‘(ii) SPECIFIED LOSS.—The term ‘specified loss’ means ordinary loss from the sale, exchange, or other disposition of property (including the termination of a position with respect to such property). Such term shall include any foreign currency loss attributable to a section 988 transaction (within the meaning of section 988) and any amount allowable as a deduction under section 1296(a)(2). ‘‘(C) SPECIAL RULE FOR COMPANIES ELECTING TO USE THE TAXABLE YEAR.—In the case of any company making an election under paragraph (4), subparagraph (A) shall be applied by substituting the last day of the company’s taxable year for October 31. ‘‘(6) TREATMENT OF MARK TO MARKET GAIN.— ‘‘(A) IN GENERAL.—For purposes of determining a regu- lated investment company’s ordinary income, notwith- standing paragraph (1)(C), each specified mark to market provision shall be applied as if such company’s taxable year ended on October 31. In the case of a company making an election under paragraph (4), the preceding sentence shall be applied by substituting the last day of the com- pany’s taxable year for October 31. ‘‘(B) SPECIFIED MARK TO MARKET PROVISION.—For pur- poses of this paragraph, the term ‘specified mark to market provision’ means sections 1256 and 1296 and any other provision of this title (or regulations thereunder) which treats property as disposed of on the last day of the taxable year. ‘‘(7) ELECTIVE DEFERRAL OF CERTAIN ORDINARY LOSSES.— Except as provided in regulations prescribed by the Secretary, in the case of a regulated investment company which has a taxable year other than the calendar year— ‘‘(A) such company may elect to determine its ordinary income for the calendar year without regard to any net ordinary loss (determined without regard to specified gains and losses taken into account under paragraph (5)) which is attributable to the portion of such calendar year which is after the beginning of the taxable year which begins in such calendar year, and ‘‘(B) any amount of net ordinary loss not taken into account for a calendar year by reason of subparagraph (A) shall be treated as arising on the 1st day of the fol- lowing calendar year.’’. (b) EFFECTIVE DATE.—The amendments made by this section shall apply to calendar years beginning after the date of the enact- ment of this Act. SEC. 403. DISTRIBUTED AMOUNT FOR EXCISE TAX PURPOSES DETER- MINED ON BASIS OF TAXES PAID BY REGULATED INVEST- MENT COMPANY. (a) IN GENERAL.—Subsection (c) of section 4982 is amended by adding at the end the following new paragraph: ‘‘(4) SPECIAL RULE FOR ESTIMATED TAX PAYMENTS.— 26 USC 4982. 26 USC 4982 note.
