INTEREST CHARGE ON INSTALLMENT SALES OF CERTAIN PROPERTY.

SEC. 5076. INTEREST CHARGE ON INSTALLMENT SALES OF CERTAIN PROPERTY. (a) General Rule.— Paragraph (1) of section 453A(b) of the 1986 Code is amended to read as follows: “(1) In general.— Thia section shall apply to any obligation which arises from the disposition of any property under the installment method, but only if the sales price of such property exceeds $150,000.” (b) Clerical Amendments.— (1) The section heading of section 453A of the 1986 Code is amended by striking out “OF REAL PROPERTY”. 102 STAT. 3683 (2) The table of sections of subpart B of part II of subchapter A of chapter 1 of the 1986 Code is amended by striking out “of real property” in the item relating to section 453A. (c) Effective Date.— (1) In general.— Except as provided in paragraph (2), the amendments made by this section shall apply to sales after December 31, 1988. (2) Binding contract, etc.— The amendments made by this section shall not apply to any sale on or before December 31, 1990, if— (A) such sale is pursuant to a written binding contract in effect on October 21, 1988, and at all times thereafter before such sale, (B) such sale is pursuant to a letter of intent in effect on October 21, 1988, or (C) there is a board of directors or shareholder approval for such sale on or before October 21, 1988.