Sec. 3138. Repeal of special rule for sale or exchange of patents

296 words·~1 min read·/bill/113/hr/1/ih/section-3138

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Part IV of subchapter P of chapter 1 is amended by striking section 1235 (and by striking the item relating to such section in the table of sections of such part). Section 483(d) is amended by striking paragraph (4). Section 871(a)(1), as amended by the preceding provisions of this Act, is amended by striking subparagraph

(B)and by redesignating subparagraphs

(C)and

(D)as subparagraphs

(B)and (C), respectively. Section 871(g)(3) is amended by striking (a)(1)(C) and inserting (a)(1)(B) . Subsections (h)(1) and (i)(1) of section 871 are each amended by striking (1)(C) and inserting (1)(B) . Section 1441, as amended by the preceding provisions of this Act, is amended— in subsections

(b)and (c)(8), by striking 871(a)(1)(C) and inserting 871(a)(1)(B) , and in subsections

(b)and (c)(5), by striking 871(a)(1)(D) and inserting 871(a)(1)(C) . Section 1442(a), as amended by the preceding provisions of this Act, is amended— by striking 871(a)(1)(C) and

(D)and inserting 871(a)(1)(B) and

(C), and by striking 871(a)(1)(D) and inserting 871(a)(1)(C) . Section 901(l)(5) is amended by striking without regard to section 1235 or any similar rule and inserting without regard to any provision which treats a disposition as a sale or exchange of a capital asset held for more than 1 year or any similar provision . Section 1274(c)(3) is amended by striking subparagraph

(E)and redesignating subparagraph

(F)as subparagraph (E). Subsections

(b)and (c)(5) of section 1441, as amended by the preceding provisions of this Act, are each amended by striking gains subject to tax under section 871(a)(1)(C), and gains on transfers described in section 1235 made on or before October 4, 1966 and inserting and gains subject to tax under section 871(a)(1)(C) . The amendments made by this section shall apply to dispositions after December 31, 2014.