PUBLIC LAW 98-612—OCT. 31, 1984
98 STAT. 3185
exchange of any property described in subparagraph (B). "(Ill) NEW SECTION 38 PROPERTY.—This subparagraph shall not apply to the sale or exchange of any property which, in the hands of the transferee, is new section 38 property. "(iv) SALE OF BUSINESS REAL ESTATE.—Any sale or exchange of any real property used in an active trade or business by a person who would be a qualified person if he disposed of his entire interest. This subparagraph shall not apply to any transaction described in the last sentence of paragraph (6)(B) (relating to transaction in excess of $100,000,000). "(C) DEFINITIONS.—For purposes of this paragraph— "(i) QUALIFIED PERSON DEFINED.—The term 'qualified person' means— "(I) a person who— "(aa) is an individual, estate, or testamentary trust, "(bb) is a corporation which immediately prior to the date of the sale or exchange has 35 or fewer shareholders, or "(cc) is a partnership which immediately prior to the date of the sale or exchange has 35 or fewer partners, "(II) is a 10-percent owner of a farm or a trade or business, "(III) pursuant to a plan, disposes of— "(aa) an interest in a farm or farm property, or "(bb) his entire interest in a trade or business and all substantially similar trades or businesses, and "(IV) the ownership interest of whom may be readily established by reason of qualified allocations (of the type described in section 168(j)(9)(B), one class of stock, or the like), "(ii) 10-PERCENT OWNER DEFINED.—The term '10percent owner' means a person having at least a 10percent ownership interest, applying the attribution rules of section 318 (other than subsection (a)(4)).
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