101 STAT. 1330-388
PUBLIC LAW 100-203—DEC. 22, 1987
(c) EFFECTIVE DATE.—
26 USC 404 note. 26 USC 463 note.
>!r 'jjibiir>i;
(1) IN GENERAL.—The amendments made by this section shall apply to taxable years beginning after December 31, 1987. (2) CHANGE IN METHOD OF ACCOUNTING.—In the case of any taxpayer who elected to have section 463 of the Internal Revenue Code of 1986 apply for such taxpayer's last taxable year „. beginning before January 1, 1988, and who is required to change V ^is method of accounting by reason of the amendments made by ir. this section— (A) such change shall be treated as initiated by the taxpayer, (B) such change shall be treated as having been made with the consent of the Secretary, and -m (C) the net amount of adjustments required by section 481 ai of such Code to be taken into account by the taxpayer— buB;o. 1 (i) shall be reduced by the balance in the suspense 1 account under section 463(c) of such Code as of the close 'i; of such last taxable year, and 1^ (ii) shall be taken into account over the 4-taxable year period beginning with the taxable year following such last taxable year as follows: In the case of the: 1st year 2nd year -. 3rd year 4th year
The percentage taken into account is: 25 5 ..^^...y^^ 3&.., «?rj, 35.
^ Notwithstanding subparagraph (C)(ii), if the period the adjust- „ ments are required to be taken into account under section 481 of such Code is less than 4 years, such adjustments shall be taken g. into account ratably over such shorter period. SEC. 10202. PROVISIONS RELATING TO INSTALLMENT SALES. (a) REPEAL OF PROPORTIONATE DISALLOWANCE OF INSTALLMENT METHOD.—
,,, (1) IN GENERAL.—Section 453C (relating to certain indebted7 ness treated as payment on installment obligations) is hereby "repealed. J (2) CONFORMING AMENDMENT.—The table of sections for subpart B of part II of subchapter E of chapter 1 is amended by striking out the item relating to section 453C. (b) REPEAL OF INSTALLMENT METHOD FOR DEALERS IN PROPERTY.—
(1) IN GENERAL.—Subparagraph (A) of section 453(b)(2) (defining installment sale) is amended to read as follows: & "(A) DEALER DISPOSITIONS.—Any dealer disposition (as defined in subsection (1))." -.
(2) DEALER DISPOSITION DEFINED.—Section 453
(relating
to
6ti installment method) is amended by adding at the end thereof the following new subsection: "(1) DEALER DISPOSITIONS.—For purposes of subsection (b)(2)(A)— "(1) IN GENERAL.—The term 'dealer disposition' means any of the following dispositions: "(A) PERSONAL PROPERTY.—Any disposition of personal ' property by a person who regularly sells or otherwise disposes of personal property on the installment plan.
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