Page:United States Statutes at Large Volume 53 Part 2.djvu/403

 53 STAT.] 76TH CONG., 1 ST SESS.-CH. 247-JUNE 29, 1939 SEC. 222. RENEWAL OF INDEBTEDNESS. (a) Section 27 (a) (4) of the Internal Revenue Code (relating to corporation credit for amounts used or set aside to pay indebted- ness) is amended by inserting at the end thereof the following new sentence: "A renewal (however evidenced) of an indebtedness shall be considered an indebtedness." (b) The amendment made by subsection (a) shall be applicable to taxable years beginning after December 31, 1938. (c) Section 27 (a) (4) of the Revenue Act of 1938 (relating to corporation credit for amounts used or set aside to pay indebtedness) is amended by inserting at the end thereof the following new sen- tence: "A renewal (however evidenced) of an indebtedness shall be considered an indebtedness." (d) The amendment made by subsection (c) shall be applicable to taxable years beginning after December 31, 1937. SEC. 223. COMMODITY CREDIT LOANS. (a) The Internal Revenue Code is amended by inserting after section 121 the following new section: "SEC. 123. COMMODITY CREDIT LOANS. "(a) Amounts received as loans from the Commodity Credit Cor- poration shall, at the election of the taxpayer, be considered as income and shall be included in gross income for the taxable year in which received. "(b) If a taxpayer exercises the election provided for in subsec- tion (a) for any taxable year beginning after December 31, 1938 then the method of computing income so adopted shall be adhered to with respect to all subsequent taxable years unless with the approval of the Commissioner a change to a different method is authorized." (b) ADJUSTMIEN-T OF BASIS.- Section 113 (b) (1) of the Internal Revenue Code is amended by adding at the end thereof a new sub- paragraph reading as follows: "(G) in the case of property pledged to the Commodity Credit Corporation, to the extent of the amount received as a loan from the Commodity Credit Corporation and treated by the taxpayer as income for the year in which received pursuant to section 123 of this chapter, and to the extent of any deficiency on such loan with respect to which the taxpayer has been relieved from liability." (c) The amendments made by subsections (a) and (b) shall be applicable to taxable years beginning after December 31, 1938. (d) RETROArTIVE APPLICATION.- The provisions of subsection (a) shall be retroactively applied in computing income for any taxable year subject to the provisions of the Revenue Act of 1934, the Reve- nue Act of 1936, or the Revenue Act of 1938, or any of such Acts as amended, if- (1) The taxpayer elects in writing (in accordance with regu- lations prescribed by the Commissioner with the approval of the Secretary) within one year from the date of the enactment of this Act to treat such loans as income for such year, and (2) The records of the taxpayer are sufficient to permit an accurate computation of income for such year, and (3) The taxpayer consents in writing to the assessment, within such period as may be agreed upon, of any deficiency for such year, even though the statutory period for the assessment of any such deficiency had expired prior to the filing of such consent. 879 Renewal of indebt- edness. Ante, p. 20. I. R. C. §27 (a) (4). Taxable years to which applicable. Renewal of indebt- edness. 52 Stat. 468. Taxable years to which applicable. Ante, pp. 56, 867. Commodity credit loans; treatment of. Restriction as to change of method. Ante, p. 44. I.It.C.§113(b)(1). Adjustmlent of basis. Taxable years to which applicable. Retroactive applica- tion. 48 Stat. 680; 49 Stat. 1648; 52 Stat. 447.

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