(i) in the case of a regulated investment company, the adjustments described in section 852(b)(2) (other than the deduction for dividends paid described in subparagraph (C) thereof)), and (ii) in the case of a real estate investment trust, the adjustments described in section 857(b)(2) (other than the deduction for dividends paid described in subparagraph (B) thereof), and (B) where such taxable year is a prior taxable year referred to in paragraph (2) of subsection (b), references in such paragraph to taxable income shall be treated as references to— (i) in the case of a regulated investment company, regulated investment company taxable income (as defined in section 852(b)(2)), and (ii) in the case of a real estate investment trust, real estate investment taxable income (as defined in section 857(b)(2)). . (4) Conforming amendments (A) Section 852(a)(1)(A) is amended by striking subsection (b)(2)(D) and inserting subsection (b)(2)(C) . (B) Section 4982(e)(1)(A) is amended by striking and (D) and inserting and (C) . (5) Effective date The amendments made by this subsection shall apply to net operating losses for taxable years ending after the 90th day after the date of the enactment of this Act. (e) Nonrecognition of gain or loss from transactions by a corporation with respect to its stock (1) In general Section 1032 is amended to read as follows: 1032. Transactions by a corporation with respect to its stock (a) Nonrecognition on exchange of stock for property No gain or loss shall be recognized to a corporation on the receipt of money or other property in exchange for stock of such corporation. (b) Derivative transactions by a corporation with respect to its stock (1) In general Except as otherwise provided in this subsection, section 1032 derivative items of a corporation shall not be taken into account in determining such corporation’s liability for tax under this subtitle. (2) Income recognition on certain forward contracts (A) In general If— (i) a corporation acquires its stock, and (ii) such acquisition is