27850 Federal Register / Vol. 61, No. 107 / Monday, June 3, 1996 / Proposed Rules

account, $185,774.84). Since this amount is

less than the section 467 gain, the recapture

amount treated as ordinary income is also

$12,380.24.

(e) Other rules relating to dispositions—(1)

In general. If property subject to a section 467

rental agreement is sold, exchanged, or

otherwise disposed of, the section 467 rent

for a period is taken into account by the

owner of the property during the period. The

lessee, however, must continue to take

section 467 rent and section 467 interest into

account without regard to the change of

ownership.

(2) Treatment of section 467 loan. If

there is a sale, exchange, or other

disposition of property subject to a

section 467 rental agreement (the

transfer), the following rules apply in

determining the amount of the section

467 loan for the period after the transfer,

the amount realized by the transferor,

and the transferee’s basis in the

property:

(i) The beginning balance of the

transferor’s section 467 loan is equal to

the net present value at the time of the

transfer of all subsequent amounts

payable as fixed rent and interest on

fixed rent to the transferor and all

subsequent amounts payable as interest

on prepaid fixed rent by the transferor.

The transferor must continue to take

into account interest on the transferor’s

section 467 loan balance after the date

of the transfer.

(ii) The beginning balance of the

transferee’s section 467 loan is equal to

the principal balance of the section 467

loan immediately before the transfer

reduced (below zero, if appropriate) by

the beginning balance of the transferor’s

section 467 loan. Amounts payable to

the transferor are not taken into account

in adjusting the transferee’s section 467

loan balance.

(iii) If the beginning balance of the

transferee’s section 467 loan is negative,

the transferor and transferee must treat

the balance as a liability that is either

assumed in connection with the transfer

of the property or secured by the

property acquired subject to the

liability. If the beginning balance of the

transferee’s section 467 loan is positive,

the transferor and transferee must treat

the balance as an additional asset

acquired in connection with the transfer

of the property. In the case of a positive

beginning balance of the transferee’s

section 467 loan, the transferee will

have an initial cost basis in the section

467 loan equal to the lesser of the

beginning balance of the loan or the

aggregate consideration for the transfer

of the property subject to the section

467 rental agreement and the transfer of

the transferor’s interest in the section

467 loan.

(3) Special rules for transfers in

certain nonrecognition transactions.

[Reserved]

(f) Treatment of assignments by lessee

and lessee-financed renewals—(1)

Substitute lessee use. If a lessee assigns

its interest in a section 467 rental

agreement to a substitute lessee or a

period when a substitute lessee has the

use of property subject to a rental

agreement is otherwise included in the

lease term under § 1.467–1(h), the

section 467 rent for a period is taken

into account by the person having the

use of the property during the period. In

addition, the following rules apply in

determining the amount of the section

467 loan for the period when the

substitute lessee has use of the property

and in computing the taxable income of

the lessee and substitute lessee—

(i) The beginning balance of the

lessee’s section 467 loan is equal to the

net present value, as of the date on

which the substitute lessee first has use

of the property, of all amounts

subsequently payable by the lessee as

fixed rent and interest on fixed rent and

all amounts subsequently payable as

interest on prepaid fixed rent to the

lessee. For purposes of this paragraph

(f), any amount otherwise payable by

the lessee shall not be treated as an

amount subsequently payable by the

lessee to the extent that such payment,

if made by the lessee, would give rise to

a right of contribution or other similar

claim against the substitute lessee or

any other person. The lessee must

continue to take into account interest on

the lessee’s section 467 loan balance

after the substitute lessee first has use of

the property.

(ii) The beginning balance of the

substitute lessee’s section 467 loan is

equal to the principal balance of the

section 467 loan immediately before the

substitute lessee first has use of the

property reduced (below zero, if

appropriate) by the beginning balance of

the lessee’s section 467 loan. Amounts

payable by the lessee to any person

other than the substitute lessee (or a

related person) or payable to the lessee

by any person other than the substitute

lessee (or a related person) are not taken

into account in adjusting the substitute

lessee’s section 467 loan balance.

(iii) If the beginning balance of the

substitute lessee’s section 467 loan is

positive, the beginning balance is

treated as—

(A) Gross income of the lessee for the

taxable year in which the substitute

lessee first has use of the property; and

(B) A liability that is either assumed

in connection with the transfer of the

leasehold interest to the substitute

lessee or secured by property acquired

subject to the liability.

(iv) If the beginning balance of the

substitute lessee’s section 467 loan is

negative—

(A) The beginning balance is treated

as an amount incurred by the lessee for

the taxable year in which the substitute

lessee first has use of the property; and

(B) Repayments of the beginning

balance are items of gross income of the

substitute lessee in the taxable year in

which the repayment occurs

(determined by applying any repayment

first to the beginning balance of the

substitute lessee’s section 467 loan).

(v) For purposes of paragraph

(f)(1)(iv)(B) of this section, repayments

occur as the negative balance is

amortized through the net accrual of

rent and negative interest.

(2) Lessor use. If a period when the

lessor has the use of property subject to

a section 467 rental agreement is

included in the lease term under

§ 1.467–1(h), the section 467 rent for the

period is not taken into account and the

lessor is treated as a substitute lessee for

purposes of paragraph (f)(1) of this

section.

(3) Special rules for transfers in

certain nonrecognition transactions.

[Reserved]

§ 1.467–8 Effective date.

Sections 1.467–1 through 1.467–7 are

effective for—

(a) Rental agreements entered into

after the date these regulations are

published as final regulations in the

Federal Register; and

(b) Disqualified leasebacks and longterm agreements entered into after June

3, 1996.

Margaret Milner Richardson,

Commissioner of Internal Revenue.

[FR Doc. 96–13719 Filed 5–31–96; 8:45 am]

BILLING CODE 4830–01–U

DEPARTMENT OF LABOR

Occupational Safety and Health

Administration

29 CFR Parts 1904 and 1952

Recording and Reporting Occupational

Injuries and Illnesses; Extension of

Comment Period

AGENCY: Occupational Safety and Health

Administration (OSHA), Department of

Labor.

ACTION: Proposed Rule; Extension of

comment period.

SUMMARY: OSHA published a Notice of

Proposed Rulemaking covering the
Federal Register / Vol. 61, No. 107 / Monday, June 3, 1996 / Proposed Rules 27851

recording and reporting of workplace

deaths, injuries and illnesses, which

appeared in the Federal Register on

February 2, 1996 (61 FR 4030). At the

request of stakeholders, OSHA is

extending the end of the public

comment period through July 1, 1996.

DATES: Written comments on the NPRM

must be postmarked on or before July 1,

1996.

ADDRESSES: Written comments should

be submitted in quadruplicate or one

original (hardcopy) and 1 disk (51⁄4 or

31⁄2) in Wordperfect 5.0, 5.1, 6.0 or

ASCII to: Docket Officer, Docket No. R–

02, Occupational Safety and Health

Administration, Room N–2625, U.S.

Department of Labor, 200 Constitution

Avenue NW, Washington, D.C. 20210,

telephone (202) 219–7894. Comments of

10 pages or less may be transmitted by

facsimile to (202) 219–5046 provided

the original and 4 copies of the

comment are sent to the Docket Officer

thereafter.

FOR FURTHER INFORMATION CONTACT:

Ms. Anne Cyr, U.S. Department of

Labor, OSHA, Room N–3647, 200

Constitution Avenue NW., Washington,

DC 20210, (202) 219–8148.

SUPPLEMENTARY INFORMATION: OSHA

published a Notice of Proposed

Rulemaking covering the recording and

reporting of workplace deaths, injuries

and illnesses along with announcing a

public meeting which was held March

26–29, which appeared in the Federal

Register on February 2, 1996 (61 FR

4030). OSHA published a second notice

to provide the public with additional

information regarding the economic

analysis of the proposed rule in the

Federal Register on February 29, 1996

(61 FR 7758–7760). OSHA published a

third notice to announce a second

public meeting and an extension of the

comment period on April 8, 1996 (61 FR

15435). The second public meeting was

held April 30 and May 1 to give the

public another opportunity to provide

OSHA with information on the

proposed rule. The transcript of that

meeting, along with additional material,

has been placed in the docket by OSHA.

The additional material consists of the

following documents:

1. ‘‘Subcontractor Safety as Influenced by

General Contractors on Small and Medium

Sized Projects’’. University of Washington,

Jimmie Hinze and Lori A. Figone, October

1988.

2. ‘‘Assuring Accuracy in Employer Injury

and Illness Records’’, U.S. General

Accounting Office (HRD–89–23), December

1988.

3. Various materials relating to OSHA

inspection activity for significant

occupational injury and illness

recordkeeping cases.

4. Various OSHA and BLS letters to the

public interpreting OSHA’s occupational

injury and illness recording and reporting

regulations.

5. Various letters and documents

describing OSHA’s collection of 1995

workplace injury and illness information.

6. Documents relating to a pilot program to

evaluate the accuracy of workplace injury

and illness records, including ‘‘Evaluating

Workplace Injury and Illness Records;

Testing a Procedure’’ Monthly Labor Review,

April 1988.

7. A July 21, 1978 Federal Register Notice

announcing rule changes for ‘‘Access to the

Log of Occupational Injuries and Illnesses to

Employees and their Representatives’’ (43 FR

31324).

8. A December 28, 1982 Federal Register

Notice announcing rule changes for

‘‘Exemption From Requirements for

Recording Occupational Injuries and

Illnesses’’ (47 FR 57699).

The transcripts of both public

meetings, comments from the public

and documentary evidence are available

from the OSHA Docket Office (see

Addresses) Docket No. R–02.

Signed in Washington, DC, this 29th day of

May, 1996.

Joseph A. Dear,

Assistant Secretary of Labor.

[FR Doc. 96–13836 Filed 5–30–96; 8:45 am]

BILLING CODE 4510–26–M

DEPARTMENT OF DEFENSE

48 CFR Parts 45 and 52

Federal Acquisition Regulation;

Government Property

AGENCY: Department of Defense.

ACTION: Notice of public meetings.

SUMMARY: The next public meetings of

the Government Property Rewrite Team

are scheduled for June 19 and 20, 1996

(and might continue on June 21, 1996,

if necessary). Discussion will focus on a

draft revision of FAR Part 45—

Government Property and associated

contract clauses.

DATES: Public Meetings: The public

meetings will be conducted at the

address shown below from 9:30 a.m. to

5:00 p.m., local time, on June 19, 20,

and, if necessary, June 21, 1996.

ADDRESSES: Public Meetings: The public

meetings will be held in the 4th floor

conference room, VSE Corporation,

2550 Huntington Ave., Alexandra, VA

22303.

FOR FURTHER INFORMATION CONTACT: Ms.

Angelena Moy, by telephone at (703)

695–1097/1098, or by FAX at (703) 695–

7596.

SUPPLEMENTARY INFORMATION:

Draft Materials

Drafts of the materials to be discussed

at the public meetings are available

electronically in Microsoft Word 6.0 and

ASCII text formats at the Major Policy

Initiatives Internet Office Home Page—

http://www.acq.osd.mil/dp/mpi/

Obtain paper copies from Ms.

Angelena Moy, PDUSD (A&T) DP/MPI,

Room 3C128, The Pentagon,

Washington DC 20301–3060.

Background

The Director, Defense Procurement, is

leading an Inter-Agency team that is

considering revisions to the Federal

Acquisition Regulation (FAR) Part 45,

Government Property, which will

reduce administrative burdens imposed

by Part 45 on contractors and

government personnel and improve

government property management and

disposal business processes. The

Director, Defense Procurement, is

providing a forum for an exchange of

ideas and information with government

and industry personnel by holding

public meetings, soliciting public

comments, and publishing notices of the

public meetings in the Federal Register.

The June 1996 public meetings are

intended to obtain comments or

suggestions regarding the current draft

FAR Part 45 which includes new and

revised material recommended by

public and government sources during

and subsequent to the November 1995

public meetings.

Michele P. Peterson,

Executive Editor, Defense Acquisition

Regulation Council.

[FR Doc. 96–13805 Filed 5–31–96; 8:45 am]

BILLING CODE 5000–04–M

DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric

Administration

50 CFR Part 625

[Docket No. 960520141–6141–01; I.D.

042696A]

RIN 0648–AH05

Summer Flounder and Scup Fisheries;

Amendment 8

AGENCY: National Marine Fisheries

Service (NMFS), National Oceanic and

Atmospheric Administration (NOAA),

Commerce.

ACTION: Proposed rule; request for

comments.

SUMMARY: NMFS issues this proposed

rule and request for comments to