AMENDMENTS RELATED TO TAX REFORM ACT OF 1984.

SEC. 4004. AMENDMENTS RELATED TO TAX REFORM ACT OF 1984. (a) In General.—Subparagraph (C) of section 172(d)(4) of the 1986 Code is amended to read as follows: “(C) any deduction for casualty or theft losses allowable under paragraph (2) or (3) of section 165(c) shall be treated as attributable to the trade or business: and”. (b) Conforming Amendments.— (1) Paragraph (3) of section 67(b) of the 1986 Code is amended by striking “for losses described in subsection (c)(3) or (d) of section 165” and inserting “for casualty or theft losses 112 STAT. 2681–911described in paragraph (2) or (3) of section 165(c) or for losses described in section 165(d)”. (2) Paragraph (3) of section 68(c) of the 1986 Code is amended by striking “for losses described in subsection (c)(3) or (d) of section 165” and inserting “for casualty or theft losses described in paragraph (2) or (3) of section 165(c) or for losses described in section 165(d)”. (3) Paragraph (1) of section 873(b) is amended to read as follows: “(1) Losses.—The deduction allowed by section 165 for casualty or theft losses described in paragraph (2) or (3) of section 165(c), but only if the loss is of property located within the United States.” (c) Effective Dates.— (1) The amendments made by subsections (a) and (b)(3) shall apply to taxable years beginning after December 31, 1983. (2) The amendment made by subsection (b)(1) shall apply to taxable years beginning after December 31, 1986. (3) The amendment made by subsection (b)(2) shall apply to taxable years beginning after December 31, 1990.