throughout holding period The applicable inflation adjustment shall be appropriately reduced for periods during which the asset was not an indexed asset. (3) Treatment of certain distributions A distribution with respect to stock in a corporation which is not a dividend shall be treated as a disposition. (4) Section cannot increase ordinary loss To the extent that (but for this paragraph) this section would create or increase a net ordinary loss to which section 1231(a)(2) applies or an ordinary loss to which any other provision of this title applies, such provision shall not apply. The taxpayer shall be treated as having a long-term capital loss in an amount equal to the amount of the ordinary loss to which the preceding sentence applies. (5) Acquisition date where there has been prior application of subsection (a)(1) with respect to the taxpayer If there has been a prior application of subsection (a)(1) to an asset while such asset was held by the taxpayer, the date of acquisition of such asset by the taxpayer shall be treated as not earlier than the date of the most recent such prior application. (j) Regulations The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this section. . (b) Clerical amendment The table of sections for part II of subchapter O of chapter 1 of the Internal Revenue Code of 1986 is amended by striking the item relating to section 1023 and by inserting after the item relating to section 1022 the following new item: Sec. 1022. Indexing of certain assets for purposes of determining gain or loss. Sec. 1023. Cross references. . (c) Effective date The amendments made by this section shall apply to indexed assets acquired by the taxpayer after December 31, 2018, in taxable years ending after such date.