108 STAT. 5006 PUBLIC LAW 103-465—DEC. 8, 1994 SEC. 733. INCREASE IN INCLUSION OF SOCIAL SECURITY BENEFITS PAID TO NONRESIDENTS. 26 USC 871. (a) IN GENERAL. — Subparagraph (A) of section 871(a)(3) (relating to taxation of Socisil Security oenefits) is amended by striking "one-half' and inserting "85 percent. 26 USC 871 note. (fc) EFFECTIVE DATE.—The amendment made by subsection (a) shall apply to benefits paid after December 31, 1994, in taxable years ending after such date. Subtitle E—Other Provisions SEC. 741. PARTNERSHIP DISTRIBUTIONS OF MARKETABLE SECURI- TIES. (a) IN GENERAL. —Section 731 (relating to extent of recognition of gain or loss on distribution) is amended by redesignating subsection (c) as subsection (d) and by inserting after subsection (b) the following new subsection: " (c) TREATMENT OF MARKETABLE SECURITIES.— "(1) IN GENERAL. —For purposes of subsection (a)(1) and section 737— "(A) the term ^monej^ includes marketable securities, and "(B) such securities shall be taken into account at their fair market value as of the date of the distribution. "(2) MARKETABLE SECURITIES.—For purposes of this subsection: "(A) IN GENERAL. — The term 'marketable securities' means financial instruments and foreign currencies which are, as of the date of the distribution, actively traded (within the meaning of section 1092(d)(1)). "(B) OTHER PROPERTY.— Such term includes— "(i) any interest in— "(I) a common trust fund, or "(II) a regulated investment company which is offering for sale or has outstanding any redeemable security (as defined in section 2(a)(32) of the Investment Company Act of 1940) of which it is the issuer, "(ii) any financial instrument which, pursuant to its terms or any other arrangement, is readily convertible into, or exchangeable for, money or marketable securities, ,, "(iii) any financial instrument the value of which is determined substantially by reference to marketable securities, "(iv) except to the extent provided in regulations prescribed by the Secretary, any interest in a precious metal which, as of the date of the distribution, is actively traded (within the meaning of section 1092(d)(l)) unless such metal was produced, used, or held in the active conduct of a trade or business by the partnership, "(v) except as otherwise provided in regulations prescribed by the Secretary, interests in any entity if substantially all of the assets of such entity consist
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