94 STAT. 206
PUBLIC LAW 96-222—APR. 1, 1980 SEC. 102. AMENDMENTS RELATED TO TITLE IL (a) GENERAL RULE.— (1) AMENDMENTS RELATED TO SUBTITLE A OF TITLE II OF THE
92 Stat. 2814.
^CT.
26 USC 465.
(A) STOCK OWNERSHIP RULES.—Subsection (a) of section 465 (relating to deductions limited to amount at risk) is amended— (i) by striking out "(determined by reference to the rules contained in section 318 rather than under section 544)" in paragraph (1)(C), and (ii) by adding at the end thereof the following new paragraph: "(3) SPECIAL RULES FOR APPLYING PARAGRAPH (ixc).—For purposes of paragraph (I)(C)— "(A) section 544(a)(2) shall be applied as if such section did not contain the phrase *or by or for his partner'; and "(B) sections 544(a)(4)(A) and 544(b)(1) shall be applied by substituting 'the corporation meet the stock ownership requirements of section 542(a)(2)' for 'the corporation a personal holding company*."
26 USC 544.
(B) CLARIFICATION OF RULES FOR RECAPTURE OF LOSSES WHERE AMOUNT AT RISK IS LESS THAN ZERO.—Subsection (d) of
section 465 (defining loss) is amended by inserting before the period at the end thereof the following: "(determined without regard to subsection (e)(l)(A))". (C)
CLARIFICATION
OF LIMITATION
ON RECAPTURE OP
LOSSES.—Subparagraph (A) of section 465(e)(2) (relating to limitation on recapture of losses where amount at risk is less than zero) is amended by inserting "by reason of losses" after "with respect to the activity". (D) EXCLUSION FOR CERTAIN CLOSELY-HELD CORPORATIONS.—
EQUIPMENT
LEASING BY
(i) Subsection (c) of section 465 (relating to deductions limited to amount at risk) is amended by adding at the end thereof the following new paragraphs: "(4) EXCLUSION FOR CERTAIN EQUIPMENT LEASING BY CLOSELYHELD CORPORATIONS.—
"(A) IN GENERAL.—In the case of a corporation described in subsection (a)(l)(C) actively engaged in equipment leasing— "(i) the activity of equipment leasing shall be treated as a separate activity, and "(ii) subsection (a) shall not apply to losses from such activity. "(B) 50-PERCENT GROSS RECEIPTS TEST.—For purposes of
subparagraph (A), a corporation shall not be considered to be actively engaged in equipment leasing unless 50 percent or more of the gross receipts of the corporation for the teixable year is attributable, under regulations prescribed by the Secretary, to equipment leasing. "(C) COMPONENT MEMBERS OF CONTROLLED GROUP TREATED
AS A SINGLE CORPORATION.—For purposes of subparagraph (A), the component members of a controlled group of corporations shall be treated as a single corporation. "(5) WAIVER OF CONTROLLED GROUP RULE WHERE THERE IS SUBSTANTIAL LEASING ACTIVITY.—
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