Page:United States Statutes at Large Volume 100 Part 3.djvu/409

 PUBLIC LAW 99-514—OCT. 22, 1986

100 STAT. 2217

(b) CONFORMING AMENDMENTS.—

(1) Section 62(a) (defining adjusted gross income), as amended by section 132, is amended by striking out paragraph (3) and redesignating paragraphs (4), (5), (6), (7), (10), (11), (12), (13), (14), and (15) as paragraphs (3) through (12), respectively. (2) Section 170(e)(1) (relating to certain contributions of ord'nary income and capital gain property) is amended by striking out "40 percent (^%6 in the case of a corporation) of. (3) Paragraph (2) of section 172(d) (relating to modifications with respect to net operating loss deduction) is amended to read as follows: "(2) CAPITAL GAINS AND LOSSES OF TAXPAYERS OTHER THAN

CORPORATIONS.—In the case of a taxpayer other than a corporation, the amount deductible on account of losses from sales or exchanges of capital assets shall not exceed the amount includible on account of gains from sales or exchanges of capital assets." (4) Paragraph (1) of section 219(f) (defining compensation) is amended by striking out "paragraph (7)" and inserting in lieu thereof "paragraph (6)". (5)(A) Section 223 (relating to cross references) is amended to read as follows:

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"SEC. 223. CROSS REFERENCE. "For deductions in respect of a decedent, see section 691."

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(B) The table of sections for part VII of subchapter B of chapter 1 is amended by striking out "references" in the item relating to section 223 and inserting in lieu thereof "reference". (6) Paragraph (4) of section 642(c) (relating to deduction for amounts paid or permanently set aside for a charitable purpose) is amended— (A) by striking out the 1st sentence, and (B) by striking out "ADJUSTMENTS" in the paragraph heading and inserting in lieu thereof "COORDINATION WITH SECTION 6 8 l ".

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(7) Paragraph (3) of section 643(a) (relating to distributable net income) is amended by striking out the last sentence. (8) Paragraph (4) of section 691(c) (relating to deduction for estate tax) is amended— (A) by striking out "1201, 1202, and 1211, and for purposes of section 57(a)(9)" and inserting in lieu thereof "l(j), 1201, and 1211", and

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(B) by striking out "CAPITAL GAIN DEDUCTION, ETC.—" in

the paragraph heading and inserting in lieu thereof "CAPj.^.,,

ITAL GAIN PROVISIONS.—".

(9) The second sentence of paragraph (2) of section 871(a) (relating to income not connected with United States business) is amended by striking out "such gains and losses shall be determined without regard to section 1202 (relating to deduction for capital gains) and". (10) Subsection (b) of section 1211 (relating to limitation on capital losses) is amended to read as follows: "(b) OTHER TAXPAYERS.—In the case of a taxpayer other than a corporation, losses from sales or exchanges of capital assets shall be allowed only to the extent of the gains from such sales or exchanges, plus (if such losses exceed such gains) the lower of—

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