Page:United States Statutes at Large Volume 102 Part 4.djvu/721

 PUBLIC LAW 100-647—NOV. 10, 1988

102 STAT. 3691

SEC. 6010. MODIFICATION OF ADDITIONAL EXEMPTION FOR STUDENT DEPENDENTS.

(a) IN GENERAL.—Clause (ii) of section 151(c)(l)(B) of the 1986 Code (relating to additional exemption for dependents) is amended by inserting "who has not attained the age of 24 at the close of such calendar year" before the period. Qo) EFFECTIVE DATE.—The amendment made by subsection (a) shall apply to taxable years beginning after December 31, 1988.

26 USC 151 note.

SEC. 6011. PRINCIPAL RESIDENCE CAPITAL GAINS EXCLUSION.

(a) IN GENERAL.—Subsection (d) of section 121 of the Internal Revenue Code of 1986 (relating to one-time exclusion of gain from sale of principal residence by individual who has attained age 55) is amended by adding at the end thereof the following new paragraph: "(9) DETERMINATION OF USE DURING PERIODS OF OUT-OF-RESIDENCE

CARE.—In the case of a taxpayer who— "(A) becomes physically or mentally incapable of selfcare, and "(B) owns property and uses such property as the taxpayer's principal residence during the 5-year period des c r i b e in subsection (a)(2) for periods aggregating at least 1 year, then the taxpayer shall be treated as using such property as the taxpayer s principal residence during any time during such 5-year period in which the taxpayer owns the property and resides in any facility (including a nursing home) licensed by a State or political suodivision to care for an individual in the taxpayer's condition." (b) EFFECTIVE DATE.—The amendment made by subsection (a) 26 USC 121 note. shall apply with respect to any sale or exchange after September 30, 1988, in taxable years ending after such date.

Subtitle B—Provisions Relating to Accounting and Agriculture SEC. 6026. AMENDMENTS TO UNIFORM CAPITALIZATION RULES. (a) TREATMENT OF CERTAIN PRODUCERS OF CREATIVE PROPERTY.—

Section 263A of the 1986 Code is amended by redesignating subsection (h) as subsection (i) and by inserting after subsection (g) the following new subsection: "(h) EXEMPTION FOR FREE LANCE AUTHORS, PHOTOGRAPHERS, AND ARTISTS.—

"(1) IN GENERAL.—Nothing in this section shall require the capitalization of any qualified creative expense. subsection, the term 'qualified creative expense' means any expense— "(A) which is paid or incurred by an individual in the trade or business of such individual (other than as an employee) of being a writer, photographer, or artist, and ' (B) which, without regard to this section, would be allowable as a deduction for the taxable year. Such term does not include any expense related to printing, photographic plates, motion picture films, video tapes, or similar items.
 * (2) QUALIFIED CREATIVE EXPENSE.—For purposes of this

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