PUBLIC LAW 104-191—AUG. 21, 1996 110 STAT. 2091 applicable period shall be for any number of months (not greater thsin 12) specified in the election and may not be changed by the taxpayer without the consent of the Secretary. "(3) KEY PERSON.— For purposes of paragraph (1), the term Tcey person' means an officer or 20-percent owner, except that the number of individuals who may be treated as key persons with respect to any taxpayer shall not exceed the greater of— " (A) 5 individuals, or "(B) the lesser of 5 percent of the total officers and employees of the taxpayer or 20 individuals. "(4) 20-PERCENT OWNER.— For purposes of this subsection, the term '20-percent owner' meems— "(A) if the taxpayer is a corporation, any person who owns directly 20 percent or more of the outstanding stock of the corporation or stock possessing 20 percent or more of the total combined voting power of all stock of the corporation, or "(B) if the taxpayer is not a corporation, any person who owns 20 "percent or more of the capital or profits interest in the employer. " (5) AGGREGATION RULES. — " (A) IN GENERAL.—For purposes of paragraph (4)(A) and applying the $50,000 limitation in paragraph (1)— "(i) all members of a controlled group shall be treated as one taxpayer, and "(ii) such limitation shall be allocated among the members of such group in such manner as the Secretary may prescribe. "(B) CONTROLLED GROUP. —For purposes of this paragraph, all persons treated as a single employer under subsection (a) or (b) of section 52 or subsection (m) or (o) of section 414 shall be treated as members of a controlled group.". (c) EFFECTIVE DATES.— 26 USC 264 note. (1) IN GENERAL.— The amendments made by this section shall apply to interest paid or accrued after October 13, 1995. (2) TRANSITION RULE FOR EXISTING INDEBTEDNESS.— (A) IN GENERAL.—In the case of— (i) indebtedness incurred before January 1, 1996, or (ii) indebtedness incurred before January 1, 1997 with respect to any contract or policy entered into in 1994 or 1995, the amendments made by this section shall not apply to qualified interest paid or accrued on such indebtedness after October 13, 1995, and before Jginuary 1, 1999. (B) QUALIFIED INTEREST.— For purposes of subparagraph (A), the qualified interest with respect to any indebtedness for any month is the amount of interest (otherwise deductible) which would be paid or accrued for such month on such indebtedness if— (i) in the case of any interest paid or accrued after December 31, 1995, indebtedness with respect to no more than 20,000 insured individuals were tgJcen into account, and
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