Amendments
2004—Subsec. (f)(4)(B). Pub. L. 108-357 struck out “is issued by a corporation or a government or political subdivision thereof and” before “is readily tradable”.
2000—Subsecs. (a), (d)(1), (i)(1), (k). Pub. L. 106-573 repealed Pub. L. 106-170, § 536(a). See 1999 Amendment notes below.
1999—Subsec. (a). Pub. L. 106-170, § 536(a)(1), which substituted “Use of installment method” for “General rule” in subsec. heading, designated existing provisions as par. (1) and inserted heading, and added heading and text of par. (2), text of which read as follows: “(2) Accrual method taxpayer.—The installment method shall not apply to income from an installment sale if such income would be reported under an accrual method of accounting without regard to this section. The preceding sentence shall not apply to a disposition described in subparagraph (A) or (B) of subsection (l)(2).”, was repealed by Pub. L. 106-573, § 2(a). See Effective Date and Construction of 2000 Amendment note below.
Subsecs. (d)(1), (i)(1), (k). Pub. L. 106-170, § 536(a)(2), which substituted “(a)(1)” for “(a)” wherever appearing, was repealed by Pub. L. 106-573. See Effective Date and Construction of 2000 Amendment note below.
1988—Subsec. (f)(1). Pub. L. 100-647, § 1018(u)(25), substituted “subsections (g)” for “subsection (g)”.
Subsec. (f)(8). Pub. L. 100-647, § 1018(u)(26), substituted “payments to be” for “payment to be”.
Subsec. (g)(1). Pub. L. 100-647, § 1006(i)(2)(B), struck out “(within the meaning of section 1239(b))” after “between related persons”.
Pub. L. 100-647, § 1006(i)(1), added subpars. (A) to (C) and struck out former subpars. (A) and (B) which read as follows:
“(A) subsection (a) shall not apply, and
“(B) for purposes of this title—
“(i) except as provided in clause (ii), all payments to be received shall be treated as received in the year of the disposition, and
“(ii) in the case of any payments which are contingent as to amount but with respect to which the fair market value may not be reasonably ascertained—
“(I) the basis shall be recovered ratably, and
“(II) the purchaser may not increase the basis of any property acquired in such sale by any amount before such time as the seller includes such amount in income.”
Subsec. (g)(3). Pub. L. 100-647, § 1006(i)(2)(A), added par. (3).
Subsec. (h)(1)(B). Pub. L. 100-647, § 1006(e)(7)(A), substituted “to 1 person in 1 transaction” for “to one person” in concluding provisions.
Subsec. (h)(1)(E). Pub. L. 100-647, § 1006(e)(7)(B), substituted “section 368(c)” for “section 368(c)(1)”.
Subsec. (j). Pub. L. 100-647, § 1008(g)(1), redesignated subsec. (j), relating to current inclusion in case of revolving credit plans, etc., as (k).
Subsec. (k). Pub. L. 100-647, § 2004(d)(5), struck out “and section 453A” after “subsection (a)” in second sentence.
Pub. L. 100-647, § 1008(g)(1), redesignated subsec. (j), relating to current inclusion in case of revolving credit plans, etc., as (k).
Subsec. (l)(1)(A). Pub. L. 100-647, § 2004(d)(1), inserted “of the same type” after “disposes of personal property”.
1987—Subsec. (b)(2)(A). Pub. L. 100-203, § 10202(b)(1), substituted “Dealer dispositions” for “Dealer disposition of personal property” in heading and amended text generally. Prior to amendment, text read as follows: “A disposition of personal property on the installment plan by a person who regularly sells or otherwise disposes of personal property on the installment plan.”
Subsec. (l). Pub. L. 100-203, § 10202(b)(2), added subsec. (l).
1986—Subsec. (f)(1). Pub. L. 99-514, § 642(a)(3), amended par. (1) generally. Prior to amendment, par. (1) read as follows: “Except for purposes of subsections (g) and (h), the term ‘related person’ means a person whose stock would be attributed under section 318(a) (other than paragraph (4) thereof) to the person first disposing of the property.”
Subsec. (f)(8). Pub. L. 99-514, § 642(b)(1), added par. (8).
Subsec. (g). Pub. L. 99-514, § 642(a)(1)(D), substituted “controlled entity” for “80-percent owned entity” in heading.
Subsec. (g)(1). Pub. L. 99-514, § 642(b)(2), amended par. (1) generally. Prior to amendment, par. (1) read as follows: “In the case of an installment sale of depreciable property between related persons within the meaning of section 1239(b), subsection (a) shall not apply, and, for purposes of this title, all payments to be received shall be deemed received in the year of the disposition.”
Subsec. (h). Pub. L. 99-514, § 631(e)(8)(C), substituted “certain liquidations” for “section 337 liquidations” in heading.
Subsec. (h)(1)(A). Pub. L. 99-514, § 631(e)(8)(A), amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: “If, in connection with a liquidation to which section 337 applies, in a transaction to which section 331 applies the shareholder receives (in exchange for the shareholder’s stock) an installment obligation acquired in respect of a sale or exchange by the corporation during the 12-month period set forth in section 337(a), then, for purposes of this section, the receipt of payments under such obligation (but not the receipt of such obligation) by the shareholder shall be treated as the receipt of payment for the stock.”
Subsec. (h)(1)(B). Pub. L. 99-514, § 631(e)(8)(A), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: “Subparagraph (A) shall not apply to an installment obligation described in section 337(b)(1)(B) unless such obligation is also described in section 337(b)(2)(B).”
Subsec. (h)(1)(E). Pub. L. 99-514, § 631(e)(8)(B), substituted “subsidiaries” for “subsidiary” in heading and amended text generally. Prior to amendment, subpar. (E) read as follows: “For purposes of subparagraph (A), in any case to which section 337(c)(3) applies, an obligation acquired in respect of a sale or exchange by the selling corporation shall be treated as so acquired by the corporation distributing the obligation to the shareholder.”
Subsec. (i)(2). Pub. L. 99-514, § 1809(c), substituted “section 1245 or 1250 (or so much of section 751 as relates to section 1245 or 1250)” for “section 1245 or 1250”.
Subsec. (j). Pub. L. 99-514, § 812(a), added subsec. (j) relating to current inclusion in case of revolving credit plans, etc.
1984—Subsec. (g). Pub. L. 98-369, § 421(b)(6)(C), struck out “spouse or” after “property to” in heading.
Subsec. (h)(1)(C). Pub. L. 98-369, § 421(b)(6)(B), inserted “married to each other or are”.
Subsec. (i). Pub. L. 98-369, § 112(a), amended subsec. (i) generally, substituting provisions relating to recognition of recapture income in year of disposition for provisions relating to application of subsec. (a) in the case of an installment sale of section 179 property.
1983—Subsec. (f)(6)(C). Pub. L. 97-448 inserted “, when used in any provision of this section other than subsection (b)(1),” after “the term ‘payment’ ”.
1981—Subsecs. (i), (j). Pub. L. 97-34 added subsec. (i) and redesignated former subsec. (i) as (j).