Notes on 26 U.S.C. § 483 : US Code - Notes

Search Notes on 26 U.S.C. § 483 : US Code - Notes

(Added Pub. L. 88-272, title II, Sec. 224(a), Feb. 26, 1964, 78
Stat. 77; amended Pub. L. 94-455, title XIX, Secs. 1901(b)(3)(B),
1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1792, 1834; Pub. L. 97-34,
title I, Sec. 126(a), Aug. 13, 1981, 95 Stat. 202; Pub. L. 97-448,
title I, Sec. 101(g), Jan. 12, 1983, 96 Stat. 2367; Pub. L. 98-369,
div. A, title I, Sec. 41(b), July 18, 1984, 98 Stat. 553; Pub. L.
99-121, title I, Secs. 101(a)(2), 102(c)(1)-(3), Oct. 11, 1985, 99
Stat. 505, 508; Pub. L. 99-514, title XVIII, Sec. 1803(a)(14)(B),
Oct. 22, 1986, 100 Stat. 2797.)
AMENDMENTS
1986 - Subsec. (d)(3). Pub. L. 99-514 substituted "for which an
issue price is determined under section 1273(b) (other than
paragraph (4) thereof) or section 1274" for "to which section 1272
applies".
1985 - Subsec. (b). Pub. L. 99-121, Sec. 101(a)(2)(A), struck out
"120 percent of" after "discount rate equal to" in closing
provisions.
Subsec. (c)(1)(B). Pub. L. 99-121, Sec. 101(a)(2)(B), amended
subpar. (B) generally. Prior to amendment, subpar. (B) read as
follows: "under which, using a discount rate equal to 110 percent
of the applicable Federal rate determined under section 1274(d),
there is total unstated interest."
Subsec. (e). Pub. L. 99-121, Sec. 102(c)(1), (2), redesignated
subsec. (f) as (e), and as so redesignated substituted "6 percent"
for "7 percent" in par. (1). Former subsec. (e), which related to
the interest rates in the case of the sales of principal residences
or farm lands, was struck out.
Subsec. (f). Pub. L. 99-121, Sec. 102(c)(1), redesignated subsec.
(g) as (f). Former subsec. (f) redesignated (e).
Subsecs. (g), (h). Pub. L. 99-121, Sec. 102(c)(1), (3),
redesignated subsec. (h) as (g) and amended it generally,
designating existing undesignated cross reference as par. (3), and
adding pars. (1) and (2). Former subsec. (g) redesignated (f).
1984 - Subsec. (a). Pub. L. 98-369 amended subsec. (a) generally,
substituting "For purposes of this title, in the case of any
payment (1) under any contract for the sale or exchange of any
property, and (2) to which this section applies, there shall be
treated as interest that portion of the total unstated interest
under such contract which, as determined in a manner consistent
with the method of computing interest under section 1272(a), is
properly allocable to such payment" for "For purposes of this
title, in the case of any contract for the sale or exchange of
property there shall be treated as interest that part of a payment
to which this section applies which bears the same ratio to the
amount of such payment as the total unstated interest under such
contract bears to the total of the payments to which this section
applies which are due under such contract".
Subsec. (b). Pub. L. 98-369 amended subsec. (b) generally,
substituting provisions directing that the present value of a
payment be determined under the rules of section 1274(b)(2) using a
discount rate equal to 120 percent of the applicable Federal rate
determined under section 1274(d) for provisions which had directed
that the present value of a payment be determined, as of the date
of the sale or exchange, by discounting such payment at the rate,
and in the manner, provided in regulations prescribed by the
Secretary and that such regulations provide for discounting on the
basis of 6-month brackets and provide that the present value of any
interest payment due not more than 6 months after the date of the
sale or exchange was to have been an amount equal to 100 percent of
such payment.
Subsec. (c). Pub. L. 98-369 substituted "subsection (a) applies"
for "section applies" in heading.
Subsec. (c)(1). Pub. L. 98-369 substituted "under which, using a
discount rate equal to 110 percent of the applicable Federal rate
determined under section 1274(d), there is total unstated interest"
for "under which, using a rate provided by regulations prescribed
by the Secretary for purposes of this subparagraph, there is total
unstated interest", in subpar. (B), and struck out provision
formerly set out following subpar. (B) which had directed that any
rate prescribed for determining whether there was total unstated
interest for purposes of subpar. (B) be at least one percentage
point lower than the rate prescribed for purposes of subsec.
(b)(2).
Subsec. (c)(2). Pub. L. 98-369 substituted "Treatment of other
debt instruments" for "Treatment of other evidence of indebtedness"
in heading and, in text, substituted "a debt instrument of the
purchaser which is given in consideration for the sale or exchange
of property shall not be treated as a payment, and any payment due
under such debt instrument" for "an evidence of indebtedness of the
purchaser given in consideration for the sale or exchange of
property shall not be considered a payment, and any payment due
under such evidence of indebtedness".
Subsec. (c)(3). Pub. L. 98-369 added par. (3).
Subsec. (d). Pub. L. 98-369 amended subsec. (d) generally,
substituting provisions relating to exceptions and limitations for
provisions which related to payments indefinite as to time,
liability, or amount.
Subsec. (e). Pub. L. 98-369 amended subsec. (e) generally,
substituting provisions relating to interest rates in case of sale
of principal residence or farm land for provision relating to
changes in terms of contract.
Subsec. (f). Pub. L. 98-369 amended subsec. (f) generally,
substituting provisions relating to maximum rate of interest on
certain transfers of land between related parties for provisions
which related to exceptions and limitations now covered in subsec.
(d) of this section.
Subsec. (g). Pub. L. 98-369 amended subsec. (g) generally,
substituting provisions which related to calling for the
promulgation of regulations by the Secretary for provisions which
related to the maximum rate of interest on certain transfers of
land between related parties now covered in subsec. (f) of this
section.
Subsec. (h). Pub. L. 98-369 added subsec. (h).
1983 - Subsec. (g)(4). Pub. L. 97-448 substituted "Paragraph (1)"
for "This section".
1981 - Subsec. (g). Pub. L. 97-34 added subsec. (g).
1976 - Subsecs. (b), (c)(1)(B), (e). Pub. L. 94-455, Sec.
1906(b)(13)(A), struck out "or his delegate" after "Secretary".
Subsec. (f)(3). Pub. L. 94-455, Sec. 1901(b)(3)(B), substituted
"all of the gain, if any, on such" for "no part of any gain on
such" and "ordinary income" for gain from the sale or exchange of
property other than a capital asset".
EFFECTIVE DATE OF 1986 AMENDMENT
Amendment by Pub. L. 99-514 effective, except as otherwise
provided, as if included in the provisions of the Tax Reform Act of
1984, Pub. L. 98-369, div. A, to which such amendment relates, see
section 1881 of Pub. L. 99-514, set out as a note under section 48
of this title.
EFFECTIVE DATE OF 1985 AMENDMENT
Amendment by Pub. L. 99-121 applicable to sales and exchanges
after June 30, 1985, in taxable years ending after such date, see
section 105(a)(1) of Pub. L. 99-121, set out as a note under
section 1274 of this title.
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by Pub. L. 98-369 applicable to taxable years ending
after July 18, 1984, and applicable to sales or exchanges after
Dec. 31, 1984, but not applicable to any sale or exchange pursuant
to a written contract which was binding on Mar. 1, 1984, and at all
times thereafter before the sale or exchange, see section 44 of
Pub. L. 98-369, set out as an Effective Date note under section
1271 of this title.
EFFECTIVE DATE OF 1983 AMENDMENT
Amendment by Pub. L. 97-448 effective, except as otherwise
provided, as if it had been included in the provision of the
Economic Recovery Tax Act of 1981, Pub. L. 97-34, to which such
amendment relates, see section 109 of Pub. L. 97-448, set out as a
note under section 1 of this title.
EFFECTIVE DATE OF 1981 AMENDMENT
Section 126(b) of Pub. L. 97-34 provided that: "The amendment
made by subsection (a) [amending this section] shall apply to
payments made after June 30, 1981, pursuant to sales or exchanges
after such date."
EFFECTIVE DATE OF 1976 AMENDMENT
Amendment by section 1901(b)(3)(B) of Pub. L. 94-455 effective
for taxable years beginning after Dec. 31, 1976, see section
1901(d) of Pub. L. 94-455, set out as a note under section 2 of
this title.
EFFECTIVE DATE
Section applicable to payments made after Dec. 31, 1963, on
account of sales or exchanges of property after June 30, 1963,
other than a sale or exchange pursuant to written contract,
including an irrevocable written option, entered into before July
1, 1963, see section 224(d) of Pub. L. 88-272, set out as an
Effective Date of 1964 Amendment note under section 163 of this
title.
PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1989
For provisions directing that if any amendments made by subtitle
A or subtitle C of title XI [Secs. 1101-1147 and 1171-1177] or
title XVIII [Secs. 1800-1899A] of Pub. L. 99-514 require an
amendment to any plan, such plan amendment shall not be required to
be made before the first plan year beginning on or after Jan. 1,
1989, see section 1140 of Pub. L. 99-514, as amended, set out as a
note under section 401 of this title.
TREATMENT OF TRANSFERS OF LAND BETWEEN RELATED PARTIES
Section 1803(a)(9) of Pub. L. 99-514 provided that: "In the case
of any sale or exchange before July 1, 1985, to which section
483(f) of the Internal Revenue Code of 1954 [now 1986] (as in
effect on the day before the date of the enactment of Public Law 99-
121 [Oct. 11, 1985]) applies, such section shall be treated as
providing that the discount rate to be used for purposes of section
483(c)(1) of such Code shall be 6 percent, compounded
semiannually."
TRANSITIONAL RULE FOR PURPOSES OF IMPUTED INTEREST RULES
Provisions, respecting treatment of debt instruments received in
exchange for property, relating to special rules for sales after
Dec. 31, 1984, and before July 1, 1985, general rule for
assumptions of loans, exception for assumptions of loans made on or
before Oct. 15, 1984, and exception for assumptions of loans with
respect to certain property, see section 44(b)(4)-(7) of Pub. L. 98-
369, as amended, set out as an Effective Date note under section
1271 of this title.