TREATMENT FOR ESTATE TAX PURPOSES OF SHORT-TERM OBLIGATIONS HELD BY NONRESIDENT ALIENS.

SEC. 1304. TREATMENT FOR ESTATE TAX PURPOSES OF SHORT-TERM OBLIGATIONS HELD BY NONRESIDENT ALIENS. (a) In General.—Subsection (b) of section 2105 is amended by striking “and” at the end of paragraph (2), by striking the period at the end of paragraph (3) and inserting and”, and by inserting after paragraph (3) the following new paragraph: “(4) obligations which would be original issue discount obligations as defined in section 871(g)(1) but for subparagraph (B)(i) thereof, if any interest thereon (were such interest received by the decedent at the time of his death) would not be effectively connected with the conduct of a trade or business within the United States.”. (b) Effective Date.—The amendment made by this section shall apply to estates of decedents dying after the date of the enactment of this Act.