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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.’’. (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 chapter 1 is amended by striking the item relating to section 1031 and inserting the following new item: ‘‘Sec. 1031. Exchange of real property held for productive use or investment.’’. (c) EFFECTIVE DATE.— (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: ‘‘(1) IN GENERAL.—The amount allowable as a deduction under this chapter for any expense for food or beverages shall 26 USC 1031 note. 26 USC prec. 1031. 26 USC 1031. VerDate Sep 11 2014 10:09 Oct 18, 2018 Jkt 079139 PO 00097 Frm 00072 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL097.115 PUBL097 dkrause on DSKBC28HB2PROD with PUBLAWS