83 STAT. ]
PUBLIC LAW 91-172-DEC. 30, 1969
611
divided by the number of complete months (phis any fractional part of a month commencin«r with the date of purchase) from the date of such purchase to the stated maturity date of such bond or other evidence of indebtedness. " (C) PURCHASE DEFINED.—For purposes of subparagraph (B), the term 'purchase' means any acquisition of a bond or other evidence of indebtedness, but only if the basis of the bond or other evidence of indebtedness is not determined in Avhole or in part by reference to the adjusted basis of such bond or other evidence of indebtedness in the hands of the person from whom acquired, or under section 1014(a) (relat- SSA Stat. 296. ing to property ac(piired from a decedent). ^e use 1014. ' ' (D) EXCEPTIONS.—This paragraph shall not apply to any holder— "(i) who has purchased the bond or other evidence of indebtedness at a premium, or "(ii) which is a life insurance company to which section 818(b) applies. 73 Stat. 133. " (E) BASIS ADJUSTMENTS.—The basis of any bond or other evidence of indebtedness in the hands of the'holder thereof shall be increased by the amount included in his gross income pursuant to subparagraph (A)."' (b) ISSUE PRICE.—Section 1232(b)(2) (relating to issue price) is esA Stat. 326; amended by adding at the end thereof the following: ^^ ^'^'- ^'*^"In the case of a bond or other evidence of indebtedness and an option or other security issued together as an investment unit, the issue price for such investment unit shall be determined in accordance with the rules stated in this paragraph. Such issue price attributable to each element of the investment unit shall be that portion thereof which the fair market value of such element bears to the total fair market value of all the elements in the investment unit. The issue price of the bond or other evidence of indebtedness included in such investment unit shall be the portion so allocated to it. I n the case of a bond or other evidence of indebtedness, or an investment unit as described in this i^aragraj)!! (other than a bond or other evidence of indebtedness or an investment unit issued pursuant to a plan of reorganization within the meaning of section 068(a)(1) or an insolvency reorganization 26 USC 368. within the meaning of section.371, 373, or 374)", which is issued 68A Stat. 121. for property and which— ^ 70 Stat. 402. " (A) is part of an issue a portion of which is traded on an established securities market, or " (B) is issued for stock or securities which are traded on an established securities market, the issue price of such bond or other evidence of indebtedness or investment unit, as the case may be, shall be the fair market value . _, of such property. Except in cases to which the preceding sentence applies, the issue price of a bond or other evidence of indebtedness (whether or not issued as a part of an investment unit) which is issued for property (other than money) shall be the stated redemption price at maturity." (c) REQUIREMENT OF REroRTiNO.—Section 0049(a)(1) (relating to 76 Stat. io56. requirements of reporting interest) is amended to read as follows: "(1) IN GENERAL.—Evcrv pci'sou— " (A) who makes payments of interest (as defined in subsection (b)) aggregating $10 or more to any other person during any calendar year,
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