Text: H.R.5822 — 101st Congress (1989-1990)All Information (Except Text)

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Union Calendar No. 552
101st CONGRESS
2d Session
H. R. 5822
[Report No. 101-894]
A BILL
To make technical corrections in certain recent tax legislation, and for
other purposes.
October 17, 1990
Reported with amendments, committed to the Committee of the Whole House on
the State of the Union, and ordered to be printed
HR 5822 RH
Union Calendar No. 552
101st CONGRESS
2d Session
 H. R. 5822
[Report No. 101-894]
To make technical corrections in certain recent tax legislation, and for
other purposes.
IN THE HOUSE OF REPRESENTATIVES
October 12, 1990
Mr. ROSTENKOWSKI introduced the following bill; which was referred to the
Committee on Ways and Means
October 17, 1990
Reported with amendments, committed to the Committee of the Whole House on
the State of the Union, and ordered to be printed
[Omit the part struck through and insert the part printed in italic]
A BILL
To make technical corrections in certain recent tax legislation, 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. SHORT TITLE; AMENDMENT OF 1986 CODE.
  (a) SHORT TITLE- This Act may be cited as the `Technical and Miscellaneous
  Revenue Act of 1990'.
  (b) AMENDMENT OF 1986 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
  Internal Revenue Code of 1986.
TITLE I--TAX TECHNICAL CORRECTIONS
SEC. 101. AMENDMENTS RELATED TO REVENUE RECONCILIATION ACT OF 1989.
  (a) AMENDMENTS RELATED TO SECTION 7108-
  (1) Paragraph (2) of section 42(o) is amended to read as follows:
  `(2) EXCEPTION FOR BOND-FINANCED BUILDINGS IN PROGRESS- For purposes of
  paragraph (1)(B), a building shall be treated as placed in service before
  1991 if--
  `(A) the bonds with respect to such building are issued before 1991,
  `(B) the taxpayer's basis in the project (of which the building is a part)
  as of December 31, 1990, is more than 10 percent of the taxpayer's reasonably
  expected basis in such project as of December 31, 1992, and
  `(C) such building is placed in service before January 1, 1993.'
  (2)(A) Paragraph (2) of section 42(c) is amended by adding at the end thereof
  the following new sentence: `Such term does not include any building with
  respect to which moderate rehabilitation assistance is provided, at any
  time during the compliance period, under section 8(e)(2) of the United
  States Housing Act of 1937.'
  (B) Paragraph (1) of section 42(b) is amended by striking the last sentence.
  (3) Subclause (I) of section 42(d)(5)(C)(ii) is amended--
  (A) by inserting `which is designated by the Secretary of Housing and
  Urban Development and, for the most recent year for which census data are
  available on household income in such tract,' after `census tract', and
  (B) by inserting before the period `for such year'.
  (4)(A) Clause (i) of section 42(g)(2)(D) is amended by inserting before
  the period `and such unit continues to be rent-restricted'.
  (B) In the case of a building to which (but for this subparagraph) the
  amendment made by subparagraph (A) does not apply, such amendment shall
  apply to--
  (i) determinations of qualified basis for taxable years beginning after
  the date of the enactment of this Act, and
  (ii) determinations of qualified basis for taxable years beginning on or
  before such date except that determinations for such taxable years shall
  be made without regard to any reduction in gross rent after August 3,
  1990, for any period before August 4, 1990.
  (5) Clause (ii) of section 42(g)(2)(D) is amended by adding at the end
  thereof the following new sentence: `In the case of a project described in
  section 142(d)(4)(B), the preceding sentence shall be applied by substituting
  `170 percent' for `140 percent' and by substituting `any low-income unit in
  the building is occupied by a new resident whose income exceeds 40 percent
  of area median gross income' for `any residential unit in the building
  (of a size comparable to, or smaller than, such unit) is occupied by a
  new resident whose income exceeds such income limitation'.'
  (6)(A) Subparagraph (A) of section 42(g)(3) is amended by striking `the
  12-month period beginning on the date the building is placed in service'
  and inserting `the 1st year of the credit period for such building'.
  (B) In the case of a building to which the amendment made by subparagraph
  (A) does not apply, the period specified in section 42(g)(3)(A) of the
  Internal Revenue Code of 1986 (as in effect before the amendment made by
  subparagraph (A)) shall not expire before the close of the taxable year
  following the taxable year in which the building is placed in service.
  (7)(A) The second sentence of section 42(h)(3)(C) is amended by striking
  `the amount described in clause (i)' and inserting `the sum of the amounts
  described in clauses (i) and (iii)'.
  (B) Subclause (II) of section 42(h)(3)(D)(ii) is amended by striking `the
  amount described in clause (i)' and inserting `the sum of the amounts
  described in clauses (i) and (iii)'.
  (8)(A) Clause (i) of section 42(h)(6)(B) is amended by inserting before
  the comma `and which prohibits the actions described in subclauses (I)
  and (II) of subparagraph (E)(ii)'.
  (B) Clause (ii) of section 42(h)(6)(B) is amended by striking `requirement'
  and inserting `requirement and prohibitions'.
  (9)(A) Subparagraph (B) of section 42(h)(6) is amended by redesignating
  clauses (iii) and (iv) as clauses (iv) and (v), respectively, and by
  inserting after clause (ii) the following new clause:
  `(iii) which prohibits the disposition to any person of any portion of
  the building to which such agreement applies unless all of the building
  to which such agreement applies is disposed of to such person,'.
  (B) Paragraph (6) of section 42(h) is amended by striking subparagraph
  (J) and by redesignating subparagraphs (K) and (L) as subparagraphs (J)
  and (K), respectively.
  (C) Subclause (II) of section 42(h)(6)(E)(ii) is amended by inserting
  before the period `not otherwise permitted under this section'.
  (D) Subparagraph (F) of section 42(h)(6) is amended by inserting `the
  nonlow-income portion of the building for fair market value and' before
  `the low-income portion'.
  (10) Subclause (I) of section 42(h)(6)(E)(i) is amended by inserting before
  the comma `unless the Secretary determines that such acquisition is part
  of an arrangement with the taxpayer a purpose of which is to terminate
  such period'.
  (11) Paragraph (8) of section 42(i) is redesignated as paragraph (7).
  (12) Paragraph (2) of section 7108(r) of the Revenue Reconciliation Act
  of 1989 is amended by inserting before the period `but only with respect
  to bonds issued after such date'.
  (13) Paragraph (6) of section 7108(r) of the Revenue Reconciliation Act
  of 1989 is amended by inserting `after' after `issued'.
  (14) the amendment made by paragraph (1) shall apply to bonds issued before,
  on, or after December 31, 1989.
  (b) AMENDMENTS RELATED TO SECTION 7202-
  (1) Subparagraph (A) of section 163(e)(5) is amended by striking the last
  sentence and inserting the following: `For purposes of this paragraph, rules
  similar to the rules of subsection (i)(3)(B) shall apply in determining
  the amount of the original issue discount and when the original issue
  discount is paid.'
  (2) Paragraph (3) of section 163(i) is amended--
  (A) by striking `(or stock)' each place it appears in subparagraph (B), and
  (B) by adding at the end thereof the following new sentence: `Except for
  purposes of paragraph (1)(B), any reference to an obligation in subparagraph
  (B) of this paragraph shall be treated as including a reference to stock.'
  (c) AMENDMENTS RELATED TO SECTION 7210-
  (1) Subparagraph (C) of section 163(j)(2) is amended by striking `less such'
  and inserting `reduced (but not below zero) by such'.
  (2) Clause (ii) of section 163(j)(2)(A) is amended by striking `and on
  such other days' and inserting `or on any other day'.
  (d) AMENDMENTS RELATED TO SECTION 7211- Clause (iii) of section 172(b)(1)(M)
  is amended--
  (1) by striking `a C corporation' in the material preceding subclause (I),
  (2) by striking `which acquires' in subclause (I) and inserting `a C
  corporation which acquires',
  (3) by striking `a corporation' in subclause (II) and inserting `a C
  corporation', and
  (4) by striking `any successor corporation' in subclause (III) and inserting
  `any C corporation which is a successor'.
  (e) AMENDMENTS RELATED TO SECTION 7301-
  (1) Paragraph (2) of section 4978B(e) is amended to read as follows:
  `(2) SECTION 133 SECURITIES- The term `section 133 securities' means
  employer securities acquired by an employee stock ownership plan in a
  transaction to which section 133 applied.'
  (2) Subsection (d) of section 4978B is amended by adding at the end thereof
  the following new paragraph:
  `(4) COORDINATION WITH OTHER TAXES- This section shall not apply to any
  disposition which is subject to tax under section 4978 or section 4978A
  (as in effect on the day before the date of enactment of this section).'
  (f) AMENDMENT RELATED TO SECTION 7401- Paragraph (2) of section 6038(e) is
  amended by adding at the end thereof the following new sentence: `In the case
  of a specified foreign corporation (as defined in section 898), the taxable
  year of such corporation shall be treated as its annual accounting period.'
  (g) AMENDMENT RELATED TO SECTION 7601- Effective with respect to transfers
  after August 3, 1990, paragraph (3) of section 1031(f) is amended by striking
  `section 267(b)' and inserting `section 267(b) or 707(b)(1)'.
  (h) AMENDMENT RELATED TO SECTION 7622- Paragraph (4) of section 1253(d)
  is amended by striking `or any period of amortization under this section'
  and inserting `under this section or any period of amortization under
  this subtitle'.
  (i) AMENDMENTS RELATED TO SECTION 7652-
  (1) Subclause (II) of section 148(f)(4)(B)(i) is amended to read as follows:
  `(II) the requirements of paragraph (2) are met with respect to amounts
  not required to be spent as provided in subclause (I) (other than earnings
  on amounts in any bona fide debt service fund).'
  (2) The last sentence of clause (i) of section 148(f)(4)(B) is amended by
  striking `replacement fund' and all that follows and inserting `replacement
  fund, and gross proceeds which arise after such 6 months and which were not
  reasonably anticipated as of the date of issuance, shall not be considered
  gross proceeds for purposes of subclause (I) only.'
  (3) Paragraph (4) of section 148(f) is amended--
   [Struck out->] (B)  [] (C)  [] government  [] of  [] (f)  [] (g)  [] (19)  [] `pre-enactment'  [