|Code Section||Effective Date||Name of Act||Name of Provision|
|852(b)(4)||* 12/22/2010||Regulated Investment Company Modernization Act of 2010||Exception to Holding Period Requirement for Exempt-Interest Dividends Declared on Daily Basis|
* Notes on Effective Date
The provision applies to stock for which the taxpayer’s holding period begins after the date of enactment (December 22, 2010).
Exception to Holding Period Requirement for Exempt-Interest Dividends Declared on Daily Basis
Explanation of Provision
The provision makes the loss disallowance rule inapplicable, except as otherwise provided by regulations, with respect to a regular dividend paid by a RIC that declares exempt-interest dividends on a daily basis in an amount equal to at least 90 percent of its net tax-exempt interest and distributes the dividends on a monthly or more frequent basis.