PUBLIC LAW 95-628—NOV. 10, 1978
92 STAT. 3627
Public Law 95-628 95th Congress An Act To revise miscellaneous timing requirements of the revenue laws, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. AMENDMENT OF 1954 CODE. Except as otherwise expressly provided, whenever in this Act an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the I n t e r n a l Revenue Code of 1954. SEC. 2. PERIOD FOR PAYMENT TO QUALIFY FOR DEDUCTIBILITY OF CERTAIN EXPENSES PAID TO RELATED TAXPAYERS. (a) AMENDMENT or SECTION 267.—Section 267 (relating to losses, expenses, and interest w i t h respect to transactions between related taxpayers) is amended by a d d i n g at the end thereof the following new subsection: "(e)
Nov. 10, 1978 [H.R. 7320] Internal Revenue Code of 1954, amendment.
26 USC 1 et. seq.
26 USC 267.
RULE W H E R E L A S T D A Y OF 2 l ^ M O N T H PERIOD F A L L S ON S U N -
DAY, E T C. — For purposes of subsection (a)(2) — " (1) where the last d a y of the 2^4 month period falls on S a t u r d a y, Sunday, or a legal holiday, such last day shall be treated as falling on the next succeeding day which is not a S a t u r d a y, Sunday, or a legal holiday, and " (2) the determination of w h a t constitutes a legal holiday shall be made under section 7503 with respect to the payor's 26 USC 7503. return of tax under this chapter for the preceding taxable year." (b) EFFECTIVE D A T E. — The amendment made by subsection (a) 26 USC 267 note. shall apply with respect to payments made after the date of the enactment of this Act. SEC. 3. INCREASE IN BASIS FOR AMOUNT OF GAIN RECOGNIZED TO THE DISTRIBUTING CORPORATION. (a) A M O U N T DISTRIBUTED.—Clause (ii) of section 3 0 1 (b)(1)(B) 26 USC 301. (relating to amount distributed in the case of corporate distributees) is amended to read as follows: " ( i i) the adjusted basis (in the hands of the distributing corporation immediately before the distribution) of the other property received, increased in the amount of gain recognized to the distributing corporation on the distribution." (b) B A S I S. — Subparagraph (B) of section 3 0 1 (d)(2) (relating to basis in case of corporate distributees) is amended to read as follows: " (B) the adjusted basis (in the h and s of the distributing corporation immediately before the distribution) of such property, increased in the amount of gain recognized to the distributing corporation on the distribution." (c) E F F E C T ON EARNINGS AND P R OF I T S. — Paragraph (3) of section
312(c) (relating to adjustments for liabilities, etc.) is amended to read as follows:
26 USC 312.
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