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In the case of any installment obligation to which paragraph (2)(B) applies, the tax imposed by this chapter for any taxable year for which payment is received on such obligation shall be increased by the amount of interest determined in the manner provided under subparagraph (B). 100–647, § 1018(u)(26), substituted “payments to be” for “payment to be”. (j), relating to current inclusion in case of revolving credit plans, etc., as (k). 100–647, § 2004(d)(5), struck out “and section 453A” after “subsection (a)” in second sentence. Except as provided in paragraph (4), the term “payment” does not include the receipt of evidences of indebtedness of the person acquiring the property (whether or not payment of such indebtedness is guaranteed by another person).

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then, on completion of the liquidation, basis previously allocated to property so received shall be reallocated for all such taxable years so that the shareholder’s basis in the stock of the corporation is properly allocated among all property received by such shareholder in such liquidation. 100–647, § 1006(i)(2)(B), struck out “(within the meaning of section 1239(b))” after “between related persons”. (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. For purposes of this section, the term “installment method” means a method under which the income recognized for any taxable year from a disposition is that proportion of the payments received in that year which the gross profit (realized or to be realized when payment is completed) bears to the total contract price. Except as otherwise provided by regulations, an election under paragraph (1) with respect to a disposition may be made only on or before the due date prescribed by law (including extensions) for filing the taxpayer’s return of the tax imposed by this chapter for the taxable year in which the disposition occurs. 100–647, § 1018(u)(25), substituted “subsections (g)” for “subsection (g)”.