other asset specified in regulations prescribed by the Secretary. (4) Look-thru rule (A) In general If a nonbusiness asset of an entity described in paragraph (1) consists of a 10-percent interest in any other entity, this subsection shall be applied by disregarding the 10-percent interest and by treating the entity as holding directly its ratable share of the assets of the other entity. (B) 10-percent interest The term 10-percent interest means— (i) in the case of an interest in a corporation, direct ownership of at least 10 percent (by vote or value) of the stock in such corporation, (ii) in the case of an interest in a partnership, direct ownership of at least 10 percent of the capital or profits interest in the partnership, and (iii) in any other case, direct ownership of at least 10 percent of the beneficial interests in the entity. . (b) Conforming amendments (1) Section 2031(b) of the Internal Revenue Code of 1986 is amended by inserting (after application of section 2705(b)) after shall be determined . (2) The table of sections of chapter 14 of subtitle B of such Code is amended by adding at the end the following: Sec. 2705. Limitation on discounts