of the exchange— (1) the mutual ditch, reservoir, or irrigation company is an organization described in section 501(c)(12)(A) (determined without regard to the percentage of its income that is collected from its members for the purpose of meeting losses and expenses), and (2) the shares in such company have been recognized by the highest court of the State in which such company was organized or by applicable State statute as constituting or representing real property or an interest in real property. . (6) The heading of section 1031 is amended by striking property and inserting real property . (7) 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 subsection, the amendments made by this section shall apply to exchanges completed after December 31, 2017. (2) Transition rule The amendments made by this section 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. 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 paragraph (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)