98 STAT. 950
PUBLIC LAW 98-369—JULY 18, 1984 "(1) WHEN MADE.—Except as otherwise provided in regulations, an election under this section shall be made not later than the 15th day of the 9th month beginning after the month in which the acquisition date occurs." (5) DEFINITION OF PURCHASE.—
26 USC 338.
(A) Subparagraph (B) of section 338(h)(3) (defining purchase) is amended to read as follows: "(B) DEEMED PURCHASE UNDER SUBSECTION (a).—The term 'purchase' includes any deemed purchase under subsection (a)(2). The acquisition date for a corporation which is deemed purchased under subsection (a)(2) shall be determined under regulations prescribed by the Secretary." (B) Paragraph (3) of section 338(h) is amended by adding at the end thereof the following new subparagraph: "(C) CERTAIN STOCK ACQUISITIONS FROM RELATED CORPORATIONS.—
"(i) IN GENERAL.—Clause (iii) of subparagraph (A) shall not apply to an acquisition of stock from a related corporation if at least 50 percent in value of the stock of such related corporation was acquired by purchase (within the meaning of subparagraph (A) and (B)). "(ii) CERTAIN DISTRIBUTIONS.—Clause (i) of subpara-
26 USC 318.
graph (A) shall not apply to an acquisition of stock described in clause (i) of this subparagraph if the corporation acquiring such stock— "(I) made a qualified stock purchase of stock of the related corporation, and "(II) made an election under this section (or is treated under subsection (e) as having made such an election) with respect to such qualified stock purchase, "(iii) RELATED CORPORATION DEFINED.—For purposes of this subparagraph, a corporation is a related corporation if stock owned by such corporation is treated (under section 318(a) other than paragraph (4) thereof) as owned by the corporation acquiring the stock." (C) Paragraph (1) of section 338(h) (defining 12-month acquisition period) is amended by inserting before the period at the end thereof the following: "(or, if any of such stock was acquired in an acquisition which is a purchase by reason of subparagraph (C) of paragraph (3), the date on which the acquiring corporation is first considered under section 318(a) (other than paragraph (4) thereof) as owning stock owned by the corporation from which such acquisition was made)." (D) Clause (ii) of section 338(h)(3)(A) (defining purchase) is amended to read as follows: "(ii) the stock is not acquired in an exchange to which section 351, 354, 355, or 356 applies and is not acquired in any other transaction described in regulations in which the transferor does not recognize the entire amount of the gain or loss realized on the transaction, and". (E) Paragraph (4) of section 3180t)) (relating to cross references) is amended to read as follows: "(4) section 338(h)(3) (defining purchase);". (6) SPECIAL RULES FOR APPLYING SECTION 338.—
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