102 STAT. 3382
PUBLIC LAW 1 0 0 - 6 4 7 - N O V. 10, 1988 "(6) SPECIAL RULE WHERE DE MINIMIS EQUITY CONTRIBUTION.—
Property shall not be treated as failing to be residential rental property for purposes of this section merely because the occupant of a residential unit in the project pays (on a voluntary basis) to the lessor a de minimis amount to be held toward the purchase by such occupant of a residential unit in such project if— "(A) all amounts so paid are refunded to the occupant on the cessation of his occupancy of a unit in the project, and "(B) the purchase of the unit is not permitted until after the close of the compliance period with respect to the building in which the unit is located. Any amount paid to the lessor as described in the preceding sentence shall be included in gross rent under paragraph (2) for purposes of determining whether the unit is rent-restricted." (m) AMENDMENTS RELATED TO SECTION 261 OF THE REFORM ACT.—
46 USC app. ii'^'^-
(1) Subparagraph (A) of section 7518(g)(6) of the 1986 Code, is amended by striking out "section l(i)' and inserting in lieu thereof "section l(j)". (2) Subparagraph (A) of section 607(h)(6) of the Merchant Marine Act, 1936 is amended by striking out "section l(i)" and inserting in lieu thereof "section 10')"SEC. 1003. AMENDMENTS RELATED TO TITLE III OF THE REFORM ACT. (a) AMENDMENTS RELATED TO SECTION 301 OF THE REFORM ACT.—
(1) Subparagraph (B) of section 172(d)(4) of the 1986 Code is amended by striking out ", (2)(B),". (2) Paragraph (1) of section 3402(m) of the 1986 Code is amended by striking out "section 62^ (other than paragraph (13) thereof)" and inserting in lieu thereof "section 62(a) (other than paragraph (10) thereof)". (3) Paragraph (2) of section 12120?) of the 1986 Code is amended to read as follows: "(2) TREATMENT O F AMOUNTS ALLOWED UNDER SECTION 1211 (b) (1) OR (2).—
"(A) IN GENERAL.—For purposes of determining the excess referred to in subparagraph (A) or (B) of paragraph (1), there shall be treated as a short-term capital gain in the taxable year an amount equal to the lesser of— "(i) the amount allowed for the taxable year under paragraph (1) or (2) of section 1211(b), or "(ii) the adjusted taxable income for such taxable year. "(B)
ADJUSTED
TAXABLE
INCOME.—For
purposes
of
subparagraph (A), the term 'adjusted taxable income' means taxable income increased by the sum of^ "(i) the amount allowed for the taxable year under paragraph (1) or (2) of section 1211(b), and "(ii) the deduction allowed for such year under section 151 or any deduction in lieu thereof. For purposes of the preceding sentence, any excess of the deductions allowed for the taxable year over the gross income for such year shall be taken into account as negative taxable income." (b) AMENDMENTS RELATED TO SECTION 302 OF THE REFORM ACT.—
26 USC 1 note.
(1) Section 302 of the Reform Act is amended by striking out sulDsection (c).
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