12 2 STA T . 2 9 12 PUBLIC LA W 11 0– 2 8 9 —J UL Y3 0 , 2008 ‘ ‘ (i)theag g r egate p eri ods o fn on qu a l ified use during the period su c h propert yw as owned b y the ta x payer , bears to ‘‘(ii) the period such property was owned by the taxpayer . ‘‘( C ) PERIOD O FN ON QUAL IFIED U S E. —F or purposes of this paragraph— ‘‘(i) I N G ENERAL.— T he ter m ‘period of nonqualified use ’ means any period (other than the portion of any period preceding J anuary 1 , 20 0 9 ) during which the property is not used as the principal residence of the taxpayer or the taxpayer’s spouse or former spouse. ‘‘(ii) EXC E PT IONS.—The term ‘period of nonqualified use’ does not include— ‘‘(I) any portion of the 5- year period described in subsection (a) which is after the last date that such property is used as the principal residence of the taxpayer or the taxpayer’s spouse, ‘‘(II) any period (not to exceed an aggregate period of 10 years) during which the taxpayer or the taxpayer’s spouse is ser v ing on qualified official extended duty (as defined in subsection (d)(9)(C)) described in clause (i), (ii), or (iii) of subsection (d)(9)( A ), and ‘‘(III) any other period of temporary absence (not to exceed an aggregate period of 2 years) due to change of employment, health conditions, or such other unforeseen circumstances as may be specified by the S ecretary. ‘‘( D ) COORDINATION W IT H RECOGNITION OF GAIN ATTRI B - UTABLE TO DEPRECIATION.—For purposes of this para- graph— ‘‘(i) subparagraph (A) shall be applied after the application of subsection (d)( 6 ), and ‘‘(ii) subparagraph ( B ) shall be applied without regard to any gain to which subsection (d)(6) applies.’’. (b) EFFECTI V E DATE.—The amendment made by this section shall apply to sales and exchanges after December 3 1, 200 8 . SEC.309 3. D E LAYIN A P PLICA T I O NO FW O R LDWIDE ALLOCATION OF INTEREST. (a) IN G ENERAL.—Paragraphs (5)(D) and (6) of section 86 4 (f) are each amended by stri k ing ‘‘December 31, 2008’’ and inserting ‘‘December 31, 2010’’. (b) TRANSITIONAL R ULE.—Subsection (f) of section 864 is amended by adding at the end the following new paragraph
‘‘( 7 ) TRANSITION.—In the case of the first taxable year to which this subsection applies, the increase (if any) in the amount of the interest expense allocable to sources within the U nited States by reason of the application of this subsection shall be 30 percent of the amount of such increase determined without regard to this paragraph.’’. (c) EFFECTIVE DATE.—The amendments made by this section shall apply to taxable years beginning after December 31, 2008. SEC. 309 4 . TI M E FOR PAYMENT OF CORPORATE ESTIMATED TA X ES. (a) REPEAL OF AD J UST M ENT FOR 2012.—Subparagraph (B) of section 401(1) of the Tax Increase Prevention and Reconciliation 26USC8 6 4note. 26 USC 1 21 note. Ap p licab ilit y .
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