Sec. 205. Amendments relating to Regulated Investment Company Modernization Act of 2010
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101 Subsection
(c)of section 101 of the Regulated Investment Company Modernization Act of 2010 is amended— by striking paragraph
(2)in paragraph
(1)and inserting paragraphs
(2)and
(3), and by adding at the end the following new paragraph: Except as provided in subparagraph (B), for purposes of section 4982 of the Internal Revenue Code of 1986, paragraphs
(1)and
(2)shall apply by substituting the 1-year periods taken into account under subsection (b)(1)(B) of such section with respect to calendar years beginning after December 31, 2010 for taxable years beginning after the date of the enactment of this Act . A regulated investment company may elect to apply subparagraph
(A)by substituting 2011 for 2010 . Such election shall be made at such time and in such form and manner as the Secretary of the Treasury (or the Secretary's delegate) shall prescribe. . The first sentence of paragraph
(2)of section 852(c) is amended— by striking and without regard to and inserting , without regard to , and by inserting , and without regard to any capital loss arising on the first day of the taxable year by reason of clauses
(ii)and
(iii)of section 1212(a)(3)(A) before the period at the end. 304 Paragraph
(1)of section 855(a) is amended by inserting on or before before . 308 Paragraph
(8)of section 852(b) is amended by redesignating subparagraph
(E)as subparagraph
(G)and by striking subparagraphs
(C)and
(D)and inserting the following new subparagraphs: For purposes of this paragraph, the term post-October capital loss means— any net capital loss attributable to the portion of the taxable year after October 31, or if there is no such loss— any net long-term capital loss attributable to such portion of the taxable year, or any net short-term capital loss attributable to such portion of the taxable year. For purposes of this paragraph, the term late-year ordinary loss means the sum of any post-October specified loss and any post-December ordinary loss. For purposes of this paragraph, the term post-October specified loss means the excess (if any) of— the specified losses (as defined in section 4982(e)(5)(B)(ii)) attributable to the portion of the taxable year after October 31, over the specified gains (as defined in section 4982(e)(5)(B)(i)) attributable to such portion of the taxable year. For purposes of this paragraph, the term post-December ordinary loss means the excess (if any) of— the ordinary losses not described in subparagraph (E)(i) and attributable to the portion of the taxable year after December 31, over the ordinary income not described in subparagraph (E)(ii) and attributable to such portion of the taxable year. . Subparagraph
(G)of section 852(b)(8), as so redesignated, is amended by striking , (D)(i)(I), and (D)(ii)(I) and inserting and
(E). The first sentence of paragraph
(2)of section 852(c), as amended by subsection (a), is amended— by striking , and without regard to and inserting , without regard to , and by inserting , and with such other adjustments as the Secretary may prescribe before the period at the end. 402 Subparagraph
(B)of section 4982(e)(6) is amended by inserting before the period at the end the following: or which determines income by reference to the value of an item on the last day of the taxable year . Subparagraph
(A)of section 4982(e)(7) is amended by striking such company and all that follows through any net ordinary loss and inserting such company may elect to determine its ordinary income and net ordinary loss (as defined in paragraph (2)(C)(ii)) for the calendar year without regard to any portion of any net ordinary loss . 201 Subparagraph
(A)of section 851(d)(2) is amended by inserting of this paragraph after subparagraph (B)(i) . Except as provided in paragraph (2), the amendments made by this section shall take effect as if included in the provision of the Regulated Investment Company Modernization Act of 2010 to which they relate. In the case of an election by a regulated investment company under section 852(b)(8) of the Internal Revenue Code of 1986 with respect to any taxable year beginning before the date of the enactment of this Act, such company may treat the amendments made by paragraphs
(1)and
(2)of subsection
(c)as not applying with respect to any such election.