Page:United States Statutes at Large Volume 54 Part 1.djvu/744

 [54 STAT. PUBLIC LAWS-CHS. 500, 501 -JULY 1, 1940 Limitation on re- duction of basis. Regulations. 82 Stat. 929. 11 U. s. c., Supp. V, 922. Real property ar- rangements by per- sons other than cor- porations. Determination of basis of property for income-tax purposes. Limitation on re- duction of basis. Regulations. required to use the debtor's basis in whole or in part shall be decreased by an amount equal to the amount by which the indebted- ness of the debtor, not including accrued interest unpaid and not resulting in a tax benefit on any income-tax return, has been canceled or reduced in a proceeding under this chapter, but the basis of any particular property shall not be decreased to an amount less than the fair market value of such property as of the date of entry of the order confirming the arrangement. Any determination of value in a proceeding under this chapter shall not be deemed a determina- tion of fair market value for the purposes of this section. The Com- missioner of Internal Revenue, with the approval of the Secretary of the Treasury, shall prescribe such regulations as he may deem necessary in order to reflect such decrease in basis for Federal income- tax purposes and otherwise carry into effect the purposes of this section.' SEo. 3 . Effective as of June 22, 1938, section 522 of such Act, as amended, is amended to read as follows: "SEc. 522. In determining the basis of property for any purposes of any law of the United States or of a State imposing a tax upon income, the basis of the debtor's property (other than money) or of such property (other than money) as is transferred to any person required to use the debtor's basis in whole or in part shall be decreased by an amount equal to the amount by which the indebted- ness of the debtor, not including accrued interest unpaid and not resulting in a tax benefit on any income-tax return, has been canceled or reduced in a proceeding under this chapter, but the basis of any particular property shall not be decreased to an amount less than the fair market value of such property as of the date of entry of the order confirming the arrangement. Any determination of value in a proceeding under this chapter shall not be deemed a determination of fair market value for the purposes of this section. The Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, shall prescribe such regulations as he may deem necessary in order to reflect such decrease in basis for Federal income-tax purposes and otherwise carry into effect the purposes of this section.' Approved, July 1, 1940. [CHAPTER 501] Julyl, 1940 AN ACT IH R. lo 005 l To amend the Act relating to preventing the publication of inventions in the (Publlc, No. 700] national interest, and for other purposes. Withholding of pat- ents In national inter- est. Provis. Deemed abandoned If published, etc. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the Act of Congress approved October 6, 1917 (40 Stat. 394, ch. 95, U. S. C., title 35, sec. 42), be amended to read as follows: "Whenever the publication or disclosure of an invention by the granting of a patent might, in the opinion of the Commissioner of Patents, be detrimental to the public safety or defense he may order that the invention be kept secret and withhold the grant of a patent for such period or periods as in his opinion the national interest requires: Provided, That the invention disclosed in the application for said patent may be held abandoned upon it being established before or by the Commissioner that in violation of said order said invention has been published or disclosed or that an application for a patent therefor has been filed in a foreign country by the inventor or his assigns or legal representatives, without the consent or approval of the Commissioner of Patents. 710

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