Federal Register / Vol. 77, No. 73 / Monday, April 16, 2012 / Proposed Rules 22519 

Facts. X owned property (Property 1). On 

January 1, Year 2, Property 1 had a fair 

market value of $100 and a basis of $70, and 

X was not subject to section 1374 treatment 

with respect to Property 1. On that date, 

when Property 1 was under a threat of 

condemnation, X sold Property 1 to an 

unrelated party for $100 (First Transaction). 

X elected to defer gain recognition under 

section 1033(a)(2), and purchased qualifying 

replacement property (Property 2) for $100 

from Y (Second Transaction) prior to the 

expiration of the period described in section 

1033(a)(2)(B). 

(ii) Analysis. The transfer of Property 2 by 

Y to X in the Second Transaction is a 

conversion transaction within the meaning of 

paragraph (a)(2)(ii) of this section. The 

Second Transaction (combined with the First 

Transaction) qualified for nonrecognition 

treatment under section 1033(a) as to X, but 

not as to Y. Assume no nonrecognition 

provision applied to Y; thus, Y recognized 

gain or loss on its sale of Property 2 in the 

Second Transaction, and the Second 

Transaction is not subject to paragraph (a) of 

this section by reason of paragraph (d)(3)(i) 

of this section. 

(e) Special rule for partnerships—(1) 

In general. The principles of this section 

apply to property transferred by a 

partnership to a RIC or REIT to the 

extent of any gain or loss in the 

converted property that would be 

allocated directly or indirectly, through 

one or more partnerships, to a C 

corporation if the partnership sold the 

converted property to an unrelated party 

at fair market value on the deemed sale 

date (as defined in paragraph (c)(3) of 

this section). If the partnership were to 

elect deemed sale treatment under 

paragraph (c) of this section in lieu of 

section 1374 treatment under paragraph 

(b) of this section with respect to such 

transfer, then any net gain recognized by 

the partnership on the deemed sale 

must be allocated to the C corporation 

partner, but does not increase the 

capital account of any partner. Any 

adjustment to the partnership’s basis in 

the RIC or REIT stock as a result of 

deemed sale treatment under paragraph 

(c) of this section shall constitute an 

adjustment to the basis of that stock 

with respect to the C corporation 

partner only. The principles of section 

743 apply to such basis adjustment. 

(2) Example. Transfer by partnership of 

property to REIT. (i) Facts. PRS, a partnership 

for Federal income tax purposes, has three 

partners: TE, a tax-exempt entity (within the 

meaning of § 1.337(d)–7(a)(2)(vi)), owns 50 

percent of the capital and profits of PRS; A, 

an individual, owns 30 percent of the capital 

and profits of PRS; and Y, a C corporation 

(within the meaning of § 1.337(d)–7(a)(2)(i)), 

owns the remaining 20 percent. PRS owns a 

building that it leases for commercial use 

(Property 1). On January 1, Year 2, when PRS 

has an adjusted basis in Property 1 of $100 

and Property 1 has a fair market value of 

$500, PRS transfers Property 1 to X, a REIT, 

in exchange for stock of X in an exchange 

described in section 351. PRS does not elect 

deemed sale treatment under paragraph (c) of 

this section. 

(ii) Analysis. The transfer of Property 1 by 

PRS to X is a conversion transaction within 

the meaning of paragraph (a)(2)(ii) of this 

section to the extent of any gain or loss that 

would be allocated to any C corporation 

partner if PRS sold Property 1 at fair market 

value to an unrelated party on the deemed 

sale date. Y is a C corporation, but neither 

TE nor A is a C corporation within the 

meaning of paragraph (a)(2)(i) of this section. 

Therefore, the transfer of Property 1 by PRS 

to X is a conversion transaction within the 

meaning of paragraph (a)(2)(ii) of this section 

to the extent of Y’s share of any such gain 

of PRS in Property 1. If PRS were to sell 

Property 1 to an unrelated party at fair 

market value on the deemed sale date, PRS 

would allocate $80 of built-in gain to Y. 

Thus, X is subject to section 1374 treatment 

on Property 1 with respect to $80 of built-in 

gain. 

(f) Effective/Applicability date—(1) In 

general. Except as provided in paragraph 

(f)(2) of this section, this section applies to 

conversion transactions that occur on or after 

January 2, 2002. For conversion transactions 

that occurred on or after June 10, 1987, and 

before January 2, 2002, see §§ 1.337(d)–5 and 

1.337(d)–6. 

(2) Special rule. Paragraphs (a)(2), (d)(1), 

(d)(3) and (e) of this section apply to 

conversion transactions that occur on or after 

[INSERT DATE OF PUBLICATION OF THE 

TREASURY DECISION ADOPTING THESE 

RULES AS FINAL REGULATIONS IN THE 

FEDERAL REGISTER]. However, 

taxpayers may apply paragraphs (a)(2), (d)(1), 

(d)(3) and (e) of this section to conversion 

transactions that occurred before [INSERT 

DATE OF PUBLICATION OF THE 

TREASURY DECISION ADOPTING THESE 

RULES AS FINAL REGULATIONS IN THE 

FEDERAL REGISTER]. For conversion 

transactions that occurred on or after January 

2, 2002 and before [INSERT DATE OF 

PUBLICATION OF THE TREASURY 

DECISION ADOPTING THESE RULES AS 

FINAL REGULATIONS IN THE FEDERAL 

REGISTER], see § 1.337(d)–7 as contained 

in 26 CFR part 1 in effect on April 1, 2011. 

Steven T. Miller, 

Deputy Commissioner for Services and 

Enforcement. 

[FR Doc. 2012–8995 Filed 4–13–12; 8:45 am] 

BILLING CODE 4830–01–P 

DEPARTMENT OF LABOR 

Wage and Hour Division 

29 CFR Part 825 

RIN 1215–AB76 and RIN 1235–AA03 

The Family and Medical Leave Act 

AGENCY: Wage and Hour Division, 

Department of Labor. 

ACTION: Extension of comment period. 

SUMMARY: This document extends the 

period for filing written comments until 

April 30, 2012 on the proposed 

revisions to certain regulations of the 

Family and Medical Leave Act of 1993 

(FMLA). On February 15, 2012, the 

Department published a Notice of 

Proposed Rulemaking to revise certain 

regulations the FMLA, primarily to 

implement recent statutory amendments 

to the Act. The comment period is 

scheduled to close on April 16, 2012. 

The Department of Labor (Department) 

is taking this action in order to provide 

interested parties additional time to 

submit comments. 

DATES: The agency must receive 

comments on or before April 30, 2012. 

The period for public comments, which 

was to close on April 16, 2012, will be 

extended to April 30, 2012. 

ADDRESSES: You may submit comments, 

identified by Regulatory Information 

Number (RIN) 1235–AA03, by electronic 

submission through the Federal 

eRulemaking Portal http:// 

www.regulations.gov. Follow 

instructions for submitting comments. 

You may also submit comments by mail. 

Address written submissions to Mary 

Ziegler, Director of the Division of 

Regulations, Legislation, and 

Interpretation, Wage and Hour Division, 

U.S. Department of Labor, Room S– 

3510, 200 Constitution Avenue NW., 

Washington, DC 20210. 

Instructions: Please submit only one 

copy of your comments by only one 

method. All submissions must include 

the agency name and RIN, identified 

above, for this rulemaking. Please be 

advised that comments received will be 

posted without change to http:// 

www.regulations.gov, including any 

personal information provided, and 

should not include any individual’s 

personal medical information. Mailed 

written submissions commenting on 

these provisions must be received by the 

date indicated for consideration in this 

rulemaking. For questions concerning 

the application of the FMLA provisions, 

individuals may contact the Wage and 

Hour Division (WHD) local district 

offices. Locate the nearest office by 

calling the WHD’s toll-free help line at 

(866) 4US–WAGE ((866) 487–9243) 

between 8 a.m. and 5 p.m. in your local 

time zone, or log onto the WHD’s Web 

site for a nationwide listing of WHD 

district and area offices at http:// 

www.dol.gov/whd/america2.htm. For 

additional information on submitting 

comments and the rulemaking process, 

see the ‘‘Public Participation’’ heading 

of the SUPPLEMENTARY INFORMATION

section of this document. 


emcdonald on DSK29S0YB1PROD with PROPOSALS
22520 Federal Register / Vol. 77, No. 73 / Monday, April 16, 2012 / Proposed Rules 

Docket: For access to the docket to 

read background documents or 

comments received, go to the Federal 

eRulemaking Portal at http:// 

www.regulations.gov. 

FOR FURTHER INFORMATION CONTACT: 

Mary Ziegler, Director, Division of 

Regulations, Legislation, and 

Interpretation, Wage and Hour Division, 

U.S. Department of Labor, Room S– 

3510, 200 Constitution Avenue NW., 

Washington, DC 20210; telephone: (202) 

693–0406 (this is not a toll free number). 

Copies of this notice of proposed 

rulemaking may be obtained in 

alternative formats (Large Print, Braille, 

Audio Tape, or Disc), upon request, by 

calling (202) 693–0675. TTY/TDD 

callers may dial toll-free (877) 889–5627 

to obtain information or request 

materials in alternative formats. 

Questions of interpretation and/or 

enforcement of regulations issued by 

this agency or referenced in this 

document may be directed to the nearest 

Wage and Hour Division District Office. 

Locate the nearest office by calling the 

Wage and Hour Division’s toll-free help 

line at (866) 4US–WAGE ((866) 487– 

9243) between 8 a.m. and 5 p.m. in your 

local time zone, or log onto the Wage 

and Hour Division’s Web site for a 

nationwide listing of Wage and Hour 

District and Area Offices at: http:// 

www.dol.gov/whd/america2.htm. 

SUPPLEMENTARY INFORMATION: 

I. Electronic Access and Filing 

Comments 

Public Participation: This notice of 

proposed rulemaking is available 

through the Federal Register and the 

http://www.regulations.gov Web site. 

You may also access this document via 

the Department’s Web site at http:// 

www.dol.gov/whd/. To comment 

electronically on federal rulemakings, 

go to the Federal eRulemaking Portal at 

http://www.regulations.gov, which will 

allow you to find, review, and submit 

comments on federal documents that are 

open for comment and published in the 

Federal Register. Please identify all 

comments submitted in electronic form 

by the RIN docket number (1235– 

AA03). Because of delays in receiving 

mail in the Washington, DC area, 

commenters should transmit their 

comments electronically via the Federal 

eRulemaking Portal at http:// 

www.regulations.gov, or submit them by 

mail early to ensure timely receipt prior 

to the close of the comment period. 

Submit one copy of your comments by 

only one method. 

II. Request for Comment 

The Notice of Proposed Rulemaking 

(NPRM) proposes revisions to the 

Family and Medical Act (FMLA) 

regulations to implement amendments 

to the military leave provisions of the 

FMLA made by the National Defense 

Authorization Act for Fiscal Year 2010, 

which extends the availability of FMLA 

leave to family members of members of 

the Regular Armed Forces for qualifying 

exigencies arising out of the 

servicmember’s deployment; defines 

those deployments covered under these 

provisions; and extends FMLA military 

caregiver leave to family members of 

certain veterans with serious injuries or 

illnesses. The NPRM also proposes to 

amend the regulations to implement the 

Airline Flight Crew Technical 

Corrections Act, which established new 

FMLA leave eligibility requirements for 

airline flight crewmembers and flight 

attendants. In addition, the proposal 

includes changes concerning the 

calculation of leave; reorganization of 

certain sections to enhance clarity; the 

removal of the forms from the 

regulations; and technical corrections of 

inadvertent drafting errors in the current 

regulations. The NPRM, complete with 

background information, economic 

impact analyses and proposed 

regulatory text, was published in the 

Federal Register on February 15, 2012 

(77 FR 8960) requesting public 

comments on the proposed revisions to 

the regulations. Interested parties were 

requested to submit comments on or 

before April 16, 2012. 

The Department has received requests 

to extend the period for filing public 

comments from various organizations. 

Because of the interest that has been 

expressed in this matter, the Department 

has decided to provide an additional 

extension of the period for submitting 

public comment until April 30, 2012. 

Dated: April 11, 2012. 

Nancy J. Leppink, 

Deputy Administrator, Wage and Hour 

Division. 

[FR Doc. 2012–9084 Filed 4–13–12; 8:45 am] 

BILLING CODE 4510–27–P 

DEPARTMENT OF HOMELAND 

SECURITY 

Coast Guard 

33 CFR Part 117 

[Docket No. USCG–2011–0926] 

RIN 1625–AA09 

Drawbridge Operation Regulation; 

Lafourche Bayou, LA 

AGENCY: Coast Guard, DHS. 

ACTION: Notice of proposed rulemaking. 

SUMMARY: The Coast Guard proposes 

changing the regulation governing six 

bridges across Bayou Lafourche, south 

of the Gulf Intracoastal Waterway 

(GIWW). Currently, these bridges 

remain closed to navigation at various 

times on weekdays during the school 

year. The Louisiana Department of 

Transportation and Development 

(LADOTD), in conjunction with the 

Lafourche Parish Council, would like to 

change the beginning date of the 

regulation to coincide with the change 

in the beginning of the school year. All 

other aspects of the regulation will 

remain the same. These changes will 

alleviate any confusion that the bridge 

tenders and mariners may have as to the 

bridge schedule now that the school 

year begins earlier than the regulation 

effective date. 

DATES: Comments and related material 

must reach the Coast Guard on or before 

May 16, 2012. 

ADDRESSES: You may submit comments 

identified by docket number USCG– 

2011–0926 using any one of the 

following methods: 

(1) Federal eRulemaking Portal: 

http://www.regulations.gov. 

(2) Fax: 202–493–2251. 

(3) Mail: Docket Management Facility 

(M–30), U.S. Department of 

Transportation, West Building Ground 

Floor, Room W12–140, 1200 New Jersey 

Avenue SE., Washington, DC 20590– 

0001. 

(4) Hand delivery: Same as mail 

address above, between 9 a.m. and 

5 p.m., Monday through Friday, except 

Federal holidays. The telephone number 

is 202–366–9329. 

To avoid duplication, please use only 

one of these four methods. See the 

‘‘Public Participation and Request for 

Comments’’ portion of the 

SUPPLEMENTARY INFORMATION section 

below for instructions on submitting 

comments. 

FOR FURTHER INFORMATION CONTACT: If 

you have questions on this rule, call or 

email Mr. Jim Wetherington; Bridge 


emcdonald on DSK29S0YB1PROD with PROPOSALS