3-YEAR HOLDING PERIOD REQUIRED BEFORE SECTION 1042 SALE.

SEC. 7303. 3-YEAR HOLDING PERIOD REQUIRED BEFORE SECTION 1042 SALE. (a) In General.—Section 1042(b) (relating to requirements to qualify for nonrecognition) is amended by adding at the end thereof the following new paragraph: “(4) 3-year holding period.—The taxpayer’s holding period with respect to the qualified securities is at least 3 years (determined as of the time of the sale).” (b) Effective Date.—The amendment made by this section shall apply to sales after July 10, 1989.