INTEREST EARNED BY BROKERS OR DEALERS NOT TAKEN INTO ACCOUNT AS PERSONAL HOLDING COMPANY INCOME.

SEC. 6279. INTEREST EARNED BY BROKERS OR DEALERS NOT TAKEN INTO ACCOUNT AS PERSONAL HOLDING COMPANY INCOME. (a) In General.—Paragraph (1) of section 543(a) of the 1986 Code is amended by striking out “and” at the end of subparagraph (B), by striking out the period at the end of subparagraph (C) and inserting in lieu thereof “, and” and by adding at the end thereof the following new subparagraph: “(D) interest received by a broker or dealer (within the meaning of section 3(a) (4) or (5) of the Securities and Exchange Act of 1934) in connection with— “(i) any securities or money market instruments held as property described in section 1221(1), “(ii) margin accounts, or “(iii) any financing for a customer secured by securities or money market instruments.” (b) Effective Date.—The amendments made by this section shall apply to interest received after the date of the enactment of this Act, in taxable years ending after such date.