94 STAT. 2250
PUBLIC LAW 96-471—OCT. 19, 1980 "(3) PAYMENT.—Except as provided in paragraph (4), the term 'payment' does not include the receipt of evidences of indebtedness of the person acquiring the property (whether or not payment of such indebtedness is guaranteed by another person). (4) PURCHASER EVIDENCES OF INDEBTEDNESS PAYABLE ON
26 USC 1031.
26 USC 356.
26 USC 167.
DEMAND OR READILY TRADABLE.—Receipt of a bond or other evidence of indebtedness which— "(A) is payable on demand, or "(B) is issued by a corporation or a government or political subdivision thereof and is readily tradable, shall be treated as receipt of payment. "(5) READILY TRADABLE DEFINED.—For purposes of paragraph (4), the term 'readily tradable' means a bond or other evidence of indebtedness which is issued— "(A) with interest coupons attached or in registered form (other than one in registered form which the taxpayer establishes will not be readily tradable in an established securities market), or "(B) in any other form designed to render such bond or other evidence of indebtedness readily tradable in an established securities market. "(6) LIKE-KIND EXCHANGES.—In the case of any exchange described in section 1031(b)— "(A) the total contract price shall be reduced to take into account the amount of any property permitted to be received in such exchange without recognition of gain, "(B) the gross profit from such exchange shall be reduced to take into account any amount not recognized by reason of section 1031(b), and "(C) the term 'payment' shall not include any property permitted to be received in such exchange without recognition of gain. Similar rules shall apply in the case of an exchange which is described in section 356(a) and is not treated as a dividend. "(7) DEPRECIABLE PROPERTY.—The term 'depreciable property' means property of a character which (in the hands of the transferee) is subject to the allowance for depreciation provided in section 167. "(g) SALE OF DEPRECIABLE PROPERTY TO SPOUSE OR 80-PERCENT OWNED ENTITY —
Post, p. 2255.
"(1) IN GENERAL.—In the case of an installment sale of depreciable property between related persons within the meaning of section 12390b), subsection (a) shall not apply, and, for purposes of this title, all payments to be received shall be deemed received in the year of the disposition. "(2) EXCEPTION WHERE TAX AVOIDANCE NOT A PRINCIPAL PUR-
POSE.—Paragraph (1) shall not apply if it is established to the satisfaction of the Secretary that the disposition did not have as one of its principal purposes the avoidance of Federal income tax. 26 USC 337.
26 USC 331.
"(h) USE OF INSTALLMENT METHOD BY SHAREHOLDERS IN SECTION 337 LIQUIDATIONS.— "(1) RECEIPT OP OBLIGATIONS NOT TREATED AS RECEIPT OF PAYMENT.—
"(A) IN GENERAL.—If, in connection with a liquidation to which section 337 applies, in a transaction to which section 331 applies the shareholder receives (in exchange for the shareholder's stock) an installment obligation acquired in respect of a sale or exchange by the corporation during the
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