96 STAT. 484
PUBLIC LAW 97-248—SEPT. 3, 1982 "(i) QUALIFIED BUSINESS.—The term
'qualified
busi-
ness' means any trade or business which— "(I) was actively conducted throughout the 5-year period ending on the date of the distribution, and "(II) was not acquired by any person within such period in a transaction in which gain or loss w a s recognized in whole or in part. "(ii)
N O N B U S I N E S S ASSET.—The
term
'nonbusiness
asset' means any asset not used in the active conduct of a trade or business." 26 USC 311.
(3) CONFORMING AMENDMENT. — S e c t i o n 311(d)(2) is amended —
(A) by inserting " and " a t the e n d of subparagraph (E), (B) by striking out the semicolon and " and " a t the e n d of subparagraph (F) and inserting in lieu thereof a period, and (C) by striking out subparagraph (G). 26 USC 311 note.
(b) EFFECTIVE D A T E S. —
(1) IN GENERAL.—Except as otherwise provided in this subsection, the amendments made by this section shall apply to distributions after August 31, 1982. (2)
DISTRIBUTIONS PURSUANT TO RULING
REQUESTS BEFORE
JULY 23, 1982.—In the case of a ruling request under section 311(d)(2)(A) of the I n t e r n a l Revenue Code of 1954 (as in effect before the amendments made by this section) made before July 23, 1982, the amendments made by this section shall not apply to distributions made— (A) pursuant to a ruling g r a n t e d pursuant to such request, and (B) within 90 days after the date of such ruling. (3) DISTRIBUTIONS PURSUANT TO FINAL J U D G M E N T S OF COURT.—
In the case of a final j u d g m e n t described in section 311(d)(2)(C) of such Code (as in effect before the amendments made by this section) rendered before July 23, 1982, the amendments made by this section shall not apply to distributions made before January 1, 1986, pursuant to such j u d g m e n t. (4) CERTAIN DISTRIBUTIONS WITH RESPECT TO STOCK ACQUIRED
BEFORE MAY 1982.—The amendments made by this section shall not apply to distributions— (A) which meet the requirements of section 311(d)(2)(A) of such Code (as in effect on the day before the date of the e n a c t m e n t of this Act), (B) which a r e made on or before August 31, 1983, and (C) which a r e made with respect to stock acquired after 1980 and before May 1982. (5) DISTRIBUTIONS OF TIMBERLAND WITH RESPECT TO STOCK OF FOREST PRODUCTS COMPANY.—If—
(A) a forest products company distributes timberland to a shareholder in redemption of the common and preferred stock in such corporation held by such shareholder, (B) section 311(d)(2)(A) of the I n t e r n a l Revenue Code of 1954 (as in effect before the amendments made by this section) would have applied to such distributions, and (C) such distributions a r e made pursuant to 1 of 2 options contained in a contract between such company and such shareholder which is binding on August 31, 1982, and a t all times thereafter.
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