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“(A) IN GENERAL.-Except as provided in subparagraph (B), the term 'acquisition indebtedness' with respect to a trust which constitutes a qualified trust under section 401 or which is de

scribed in section 408(a) or an organization de

scribed in section 170(b)(1)(A) (ii) or (iv) does not

include indebtedness incurred by a limited part

nership described in section 512(b)(16) in acquiring, developing or operating a working interest in a domestic oil or gas well.

“(B) EXCEPTIONS.-The provisions of subparagraph (A) shall not apply with respect to a trust or organization in any case in which

"(i) the acquisition price of such working interest is not a fixed amount determined as of the date of acquisition;

"(ii) the amount of any such indebtedness or any other amount payable with respect to such indebtedness or the time for

making any payment of any such amount, is dependent, in whole or in part, upon any revenue, income, or profits derived by or from such limited partnership;

"(iii) such working interests are at any time after their acquisition leased by the lim

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ited partnership to the person selling such properties to the limited partnership or to

any person who bears a relationship described in section 267(b) to such person;

"(iv) such working interests are acquired from, or are at any time after the ac

quisition leased by the limited partnership to, any person who bears a relationship described in section 512(b)(16)(C) to such trust or organization; or

"(v) any person described in clause (iii) or (iv) provides such limited partnership, trust, or organization with nonrecourse financing in connection with such transaction and such debt

"(I) is subordinate to any other indebtedness on such property, or

"(II) bears interest at a rate which is significantly less than the rate availa

ble from any person not described in

clause (iii) or (iv) at the time such in

debtedness is incurred.

"(C) SPECIAL RULE FOR CERTAIN TRANS

FERS. The provisions of clauses (iii), (iv) and (v)

of subparagraph (B) shall not apply to any acqui

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sition, lease, farmout or other transfer of working interests to a person related to the general part

ner provided the terms of such transfer are con

sistent with the terms of similar transfers in the

geographic area.".

(c) The amendments made by this subsection shall apply

7 to partnership taxable years beginning after December 31,

8 1982.

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98TH CONGRESS 1ST SESSION

S. 1579

To amend the Internal Revenue Code of 1954 to provide that the standard mileage rate for use of a passenger automobile which may be used in computing the charitable contribution deduction shall be the same as the standard mileage rate which may be used in computing the business expense deduction.

IN THE SENATE OF THE UNITED STATES

JUNE 29 (legislative day, JUNE 27), 1983

Mr. ARMSTRONG introduced the following bill; which was read twice and referred to the Committee on Finance

A BILL

To amend the Internal Revenue Code of 1954 to provide that the standard mileage rate for use of a passenger automobile which may be used in computing the charitable contribution deduction shall be the same as the standard mileage rate which may be used in computing the business expense deduction.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 3 That (a) section 170 of the Internal Revenue Code of 1954 4 (relating to charitable, etc., contributions and gifts) is amend5 ed by redesignating subsections (h) and (i) as subsections (i)

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1 and (j), respectively, and by inserting after subsection (g) the

2 following new subsection:

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"(h) STANDARD MILEAGE RATE FOR USE OF PASSEN4 GER AUTOMOBILE.-If the Secretary prescribes by regula5 tion a standard mileage rate which may be used to compute 6 for the taxable year the deduction under section 162 for use 7 of a passenger automobile, such standard mileage rate may 8 be used to compute for such year the deduction under this 9 section for use of a passenger automobile.".

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(b) The amendments made by subsection (a) shall apply 11 to taxable years beginning after December 31, 1982.

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