104 STAT. 1388-462 PUBLIC LAW 101-508 —NOV. 5, 1990 "(i) any person acquires property from another person who acquired such property by purchase (as determined under this paragraph with regard to this subparagraph), and "(ii) the adjusted basis of such property in the hands of such acquirer is determined in whole or in part by reference to the adjusted basis of such property in the hands of such other person, such acquirer shall be treated as having acquired such property by purchase on the date it was so acquired by such other person. "(6) SPECIAL RULE WHERE SUBSTANTIAL DIMINUTION OF RISK. — "(A) IN GENERAL.— If this paragraph applies to any stock or securities for any period, the running of any 5-year period set forth in subparagraph (A) or (B) of paragraph (3) (whichever applies) shall be suspended during such period. "(B) PROPERTY TO WHICH SUSPENSION APPLIES.— Th is paragraph applies to any stock or securities for any period during which the holder's risk of loss with respect to such stock or securities, or with respect to any portion of the activities of the corporation, is (directly or indirectly) substantially diminished by— "(i) an option, "(ii) a short sale, "(iii) any special class of stock, or "(iv) any other device or transaction. "(1) AGGREGATION RULES.— "(A) IN GENERAL.—For purposes of this subsection, a person and all persons related to such person (within the meaning of 267(b) or 707(b)(1)) shall be treated as one person. " (B) PERSONS ACTING PURSUANT TO PLANS OR ARRANGE- MENTS. — If two or more persons act pursuant to a plan or arrangement with respect to acquisitions of stock or securities in the distributing corporation or controlled corporation, such persons shall be treated as one person for purposes of this subsection. " (8) ATTRIBUTION FROM ENTITIES. — " (A) IN GENERAL. —Paragraph (2) of section 318(a) shall apply in determining whether a person holds stock or securities in any corporation (determined by substituting '10 percent' for '50 percent' in subparagraph (C) of such paragraph (2) and by treating any reference to stock as including a reference tosecurities). "(B) DEEMED PURCHASE RULE. —If— "(i) any person acquires by purchase an interest in any entity, and "(ii) such person is treated under subparagraph (A) as holding any stock or securities by reason of holding such interest, such stock or securities shall be treated as acquired by purchgise by such person on the later of the date of the purchase of the interest in such entity or the date such stock or securities are acquired by purchase by such entity. "(9) REGULATIONS. —The Secretary shall prescribe such regulations as may be necessary to carry out the purposes of this subsection, including—
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