9 0 STAT. 2 9 6
PUBLIC LAW 94-253—MAR. 31, 1976 "(C)
means the final system plan (within the meaning of para, g r a p h (6) of section 102 of such Act). Such term includes supplemental transactions under section 305 of such Act. " (D) SUBSIDIARY.—The term ' s u b s i d i a r y ' means any corporation 100 percent of whose total combined voting shares are, directly or indirectly, owned or controlled by the Consolidated Rail Corporation."
45 USC 702. Ante, p. 100. 45 USC 745. {h>i ^j-> i. !.Ai\
F I N A L SYSTEM P L A N. — The term 'final system p l a n '
• '
(b) BASIS AMENDMENTS. — (1) BASIS OF PROPERTY
26 USC 358. f; J.. -.-
RECEIVED
BY TRANSFEROR
RAILROAD
CORPORATIONS.—Section 358(a) of such Code (relating to basis to distributees) is amended by striking out "or 371 (b) " and inserting in lieu thereof "371 (b), or 374". (2) ALLOCATION OF BASIS.— Subsection (b) of section 358 of such
Code (relating to allocation of basis) is amended by adding at the end thereof the following new paragraph: "(3)
CERTAIN EXCHANGES INVOLVING CONRAIL.—To the extent
provided in regulations prescribed by the Secretary or his delegate, i n the case of an exchange to which section 354(d) ( o r so much of section 356 as relates to section 3 5 4 (d)) or section 374(c) applies, for purposes of allocating basis under paragraph (1), stock of the Consolidated Rail Corporation and the certificate of value of the United States Railway Association which relates to such stock shall, so long as they are held by the same person, be treated as one property. " (c) E F F E C T S ON SHAREHOLDERS AND SECURITY HOLDERS.—Section 354
26 USC 354.
of such Code (relating to exchanges of stock and securities in certain reorganizations) is amended by a d d i n g a t the end thereof the following new subsection: "(d)
EXCHANGES ITNDER THE F I N A L SYSTEM P L A N FOR CONRAIL.—
Xo gain or loss shall be recognized if stock or securities in a corporation are, in pursuance of an exchange to which paragraph (1) or (2) of section 374(c) applies, exchanged solely for stock of the Consolidated Rail Corporation, securities of such Corporation, certificates of value of the ignited States Railway Association, or any combination thereof." Clause (i) of section 356(d)(2)(B) of such Code (relating to receipt of additional consideration) is amended by striking out "subsection (c) thereof" and inserting in lieu thereof "subsection (c) or (d) thereof".
26 USC 356.
(d) I^sE OF EXPIRED N E T OPERATING Loss CARRYOVERS TO OFFSET INCOME ARISING F R O M CERTAIN RAILROAD REORGANIZATION PROCEED-
26 USC 374. J;th.;
iNGs.—Section 374 of such Code (relating to gain or loss not recognized in certain railroad reorganizations) is amended by a d d i n g at the end thereof the following new subsection:
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«^g^ jjgp ^p EXPIRED N E T OPERATING Loss CARRYOVERS To OFFSET INCOME ARISING F R O M CERTAIN RAILROAD REORGANIZATION PROCEEDTNGS.— " (1) IN GENERAL.—If—
•' " 11 USC 205.
'" " •
45 USC 743. Antt, p. 100, 104. 45 USC 745, 746.
" (A) any corporation receives or accnies any amount pursuant to— " (i) an a w a r d in (or settlement of) a proceeding under section 77 of the B a n k r u p t c y Act, " ( i i) a^n award in (or settlement of) a proceeding before the special court to carry out section 303(c), 305, ^ or 306 of the Regional Rail Reorganization Act of 1973.
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