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Present Law
To qualify as a regulated investment company ("RIC"), a company must derive less than 30 percent of its gross income from the sale or other disposition of stock or securities held for less than 3 months (the "30-percent test" or "short-short rule").
House Bill
The 30-percent test (or short-short rule) is repealed effective for taxable years ending after the date of enactment.
Senate Amendment
The 30-percent test (or short-short rule) is repealed effective for taxable years beginning after the December 31, 1997.
Conference Agreement
The conference agreement follows the House bill and the Senate amendment effective for taxable years beginning after the date of enactment.