40) Under a safe harbor, changes arising from a debt refinancing will not produce a substantial modification where (1) neither the amount, nor the time for payment, of the principal on the debt differs by more than a de minimis amount, (2) the rent allocation schedule and the payments of rent are altered only to the extent necessary to take into account
the refinancing, (3) the lessor and lessee are not related, and (4) with respect to the indebtedness being refinanced, the lessor was granted the unilateral option to repay the debt without the lender's consent.
Thus, the 1997 Act does not alter the provisions in the regulations that (i) only assets held for investment are considered, (ii) the assets of a subsidiary are treated as owned proportionally by a parent owning 50 percent or more of its stock, (iii) the determination that a corporation is an investment company must take into account
any plan with regard to an entity's assets in existence at the time of the transfer; and (iv) a contribution of property to an investment company must result in diversification in order for gain to be recognized.
On the Maturity Date, holders of PIES will now receive cash and, at the option of MediaOne Group, with respect to the portion of the Transaction Value represented by Vodafone ADSs, cash or Vodafone ADSs or a combination of cash and Vodafone ADSs, in each case based on an exchange rate which has been adjusted from the original Exchange Rate to take into account
the Merger (the "Revised Exchange Rate"), as described below.
How does a taxpayer take into account
an installment obligation received in an installment sale transaction not eligible for the installment method for any reason, including Sec.