Repeal of requirement that inventory be substantially appreciated in certain partnership distributions treated as sale or exchange

(a) In general Clause (ii) of section 751(b)(1)(A) is amended by striking which have appreciated substantially in value. (b) Conforming amendment Section 751(b) is amended by striking paragraph (3). (c) Effective date The amendments made by this section shall apply to distributions after the date of the enactment of this Act.