543
‘‘(10) REFERENCES.—For purposes of this sec-
tion, any reference to chapter 43 of title 38, United
States Code, shall be treated as a reference to such
chapter as in effect on December 12, 1994 (without re-
gard to any subsequent amendment).’’.
(2) EFFECTIVE DATE.—The amendment made by
this subsection shall be effective as of December 12,
1994.
(p) REPORTING OF REAL ESTATE TRANSACTIONS.—
(1) IN
GENERAL.—Paragraph (3) of section
6045(e) (relating to prohibition of separate charge for
filing return) is amended by adding at the end the
following new sentence: ‘‘Nothing in this paragraph
shall be construed to prohibit the real estate reporting
person from taking into account its cost of complying
with such requirement in establishing its charge
(other than a separate charge for complying with such
requirement) to any customer for performing services
in the case of a real estate transaction.’’.
(2) EFFECTIVE DATE.—The amendment made by
paragraph (1) shall take effect as if included in sec-
tion 1015(e)(2)(A) of the Technical and Miscellaneous
Revenue Act of 1988.
(q) CLARIFICATION OF DENIAL OF DEDUCTION FOR
STOCK REDEMPTION EXPENSES.
544
(1) IN
GENERAL.—Paragraph (1) of section
162(k) is amended by striking ‘‘the redemption of its
stock’’ and inserting ‘‘the reacquisition of its stock or
of the stock of any related person (as defined in sec-
tion 465(b)(3)(C))’’.
(2) CERTAIN
DEDUCTIONS
PERMITTED.—Sub-
paragraph (A) of section 162(k)(2) is amended by
striking ‘‘or’’ at the end of clause (i), by redesignating
clause (ii) as clause (iii), and by inserting after
clause (i) the following new clause:
‘‘(ii) deduction for amounts which are
properly allocable to indebtedness and am-
ortized over the term of such indebtedness,
or’’.
(3) CLERICAL
AMENDMENT.—The subsection
heading for subsection (k) of section 162 is amended
by striking ‘‘REDEMPTION’’ and inserting ‘‘REACQUI-
SITION’’.
(4) EFFECTIVE DATE.—
(A) IN GENERAL.—Except as provided in
subparagraph (B), the amendments made by this
subsection shall apply to amounts paid or in-
curred after September 13, 1995, in taxable
years ending after such date.
545
(B) 
PARAGRAPH
(2).—The 
amendment
made by paragraph (2) shall take effect as if in-
cluded in the amendment made by section 613 of
the Tax Reform Act of 1986.
(r) CLERICAL AMENDMENT TO SECTION 404.—
(1) IN
GENERAL.—Paragraph (1) of section
404(j) is amended by striking ‘‘(10)’’ and inserting
‘‘(9)’’.
(2) EFFECTIVE DATE.—The amendment made by
paragraph (1) shall take effect as if included in the
amendments made by section 713(d)(4)(A) of the Def-
icit Reduction Act of 1984.
(s) PASSIVE INCOME NOT TO INCLUDE FSC INCOME,
ETC.—
(1) IN
GENERAL.—Paragraph (2) of section
1296(b) is amended by striking ‘‘or’’ at the end of
subparagraph (B), by striking the period at the end
of subparagraph (C) and inserting ‘‘, or’’, and by in-
serting after subparagraph (C) the following new sub-
paragraph:
‘‘(D) which is foreign trade income of a
FSC or export trade income of an export trade
corporation (as defined in section 971).’’.
(2) EFFECTIVE DATE.—The amendment made by
paragraph (1) shall take effect as if included in the
546
amendments made by section 1235 of the Tax Reform
Act of 1986.
(t) MISCELLANEOUS CLERICAL AMENDMENTS.—
(1) Subclause (II) of section 56(g)(4)(C)(ii) is
amended by striking ‘‘of the subclause’’ and inserting
‘‘of subclause’’.
(2) Paragraph (2) of section 72(m) is amended
by inserting ‘‘and’’ at the end of subparagraph (A),
by striking subparagraph (B), and by redesignating
subparagraph (C) as subparagraph (B).
(3) Paragraph (2) of section 86(b) is amended by
striking ‘‘adusted’’ and inserting ‘‘adjusted’’.
(4)(A) The heading for section 112 is amended
by striking ‘‘COMBAT PAY’’ and inserting ‘‘COMBAT
ZONE COMPENSATION’’.
(B) The item relating to section 112 in the table
of sections for part III of subchapter B of chapter 1
is amended by striking ‘‘combat pay’’ and inserting
‘‘combat zone compensation’’.
(C) Paragraph (1) of section 3401(a) is amended
by striking ‘‘combat pay’’ and inserting ‘‘combat zone
compensation’’.
(5) Clause (i) of section 172(h)(3)(B) is amended
by striking the comma at the end thereof and insert-
ing a period.