Page 74 - Tax Reform

131 STAT. 2124 PUBLIC LAW 115–97—DEC. 22, 2017

valid election under section 761(a) to be excluded from the applica-
tion of all of subchapter K shall be treated as an interest in
each of the assets of such partnership and not as an interest
in a partnership.’’.
26 USC 1031. (4) Section 1031(h) is amended to read as follows:
‘‘(h) SPECIAL RULES FOR FOREIGN REAL PROPERTY.—Real prop-
erty located in the United States and real property located outside
the United States are not property of a like kind.’’.
(5) The heading of section 1031 is amended by striking
‘‘PROPERTY’’ and inserting ‘‘REAL PROPERTY’’.
(6) The table of sections for part III of subchapter O of
26 USC chapter 1 is amended by striking the item relating to section
prec. 1031. 1031 and inserting the following new item:
‘‘Sec. 1031. Exchange of real property held for productive use or investment.’’.
26 USC 1031 (c) EFFECTIVE DATE.—
note. (1) IN GENERAL.—Except as otherwise provided in this sub-
section, the amendments made by this section shall apply to
exchanges completed after December 31, 2017.
(2) TRANSITION RULE.—The amendments made by this sec-
tion shall not apply to any exchange if—
(A) the property disposed of by the taxpayer in the
exchange is disposed of on or before December 31, 2017,
or
(B) the property received by the taxpayer in the
exchange is received on or before December 31, 2017.
SEC. 13304. LIMITATION ON DEDUCTION BY EMPLOYERS OF EXPENSES
FOR FRINGE BENEFITS.
(a) NO DEDUCTION ALLOWED FOR ENTERTAINMENT EXPENSES.—
(1) IN GENERAL.—Section 274(a) is amended—
(A) in paragraph (1)(A), by striking ‘‘unless’’ and all
that follows through ‘‘trade or business,’’,
(B) by striking the flush sentence at the end of para-
graph (1), and
(C) by striking paragraph (2)(C).
(2) CONFORMING AMENDMENTS.—
(A) Section 274(d) is amended—
(i) by striking paragraph (2) and redesignating
paragraphs (3) and (4) as paragraphs (2) and (3),
respectively, and
(ii) in the flush text following paragraph (3) (as
so redesignated)—
(I) by striking ‘‘, entertainment, amusement,
recreation, or use of the facility or property,’’ in
item (B), and
(II) by striking ‘‘(D) the business relationship
to the taxpayer of persons entertained, using the
facility or property, or receiving the gift’’ and
inserting ‘‘(D) the business relationship to the tax-
payer of the person receiving the benefit’’,
(B) Section 274 is amended by striking subsection (l).
(C) Section 274(n) is amended by striking ‘‘AND ENTER-
TAINMENT’’ in the heading.
(D) Section 274(n)(1) is amended to read as follows:
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‘‘(1) IN GENERAL.—The amount allowable as a deduction
under this chapter for any expense for food or beverages shall