Page:United States Statutes at Large Volume 56 Part 1.djvu/866

 PUBLIC LAWS-CH. 619-OCT. 21, 1942 Ante, pp. 805 -807. Ante, p. 802. 53 Stat. 71. 26U.S.C.§§201- 208. Ante, p. 821; post, pp. 861, 867-875 878. Infra. Ante, p. 837. 53 Stat. 37 . 26 U. . C. 112 (b). number of days in such taxable year before July 1, 1942, bears to the total number of days in such taxable year, plus "(B) that portion of a tentative tax, computed as if the amendments made by section 105 (a) and the amendments made by sections 105 (b) (other than those relating to divi- dends on the preferred stock of public utilities) (c), (d), and (e) (1) of the Revenue Act of 1942 were applicable to such taxable year, which the number of days in such taxable year after June 30, 1942, bears to the total number of days in such taxable year. "(2) TAXPAYERS OmHER THAN CORPORATIONS.- In the case of a taxpayer other than a corporation, an amount equal to the sum of- "(A) that portion of a tentative tax, computed without regard to section 140 of the Revenue Act of 1942, which the number of days in such taxable year before July 1, 1942, bears to the total number of days in such taxable year, plus "(B) that portion of a tentative tax, computed as if the amendments made by sections 102 and 103 of the Revenue Act of 1942 were applicable to such taxable year, which the number of days in such taxable year after June 30, 1942, bears to the total number of days in such taxable year. "(b) SPECIAL CLASSES oF TAXPAYER.-T his section shall not apply to an insurance company subject to Supplement G, an investment company subject to Supplement Q, or a Western Hemisphere Trade Corporation, as defined in section 109." (b) TAXABLE YEARS TO WHICH AMENDMENT APPLICABLE.- The amendment made by this section shall be applicable to taxable years beginning in 1941 and ending after June 30, 1942. SEC. 141. WESTERN HEMISPHERE TRADE CORPORATIONS. The Internal Revenue Code is amended by inserting after section 108 the following new section: "SEC. 109. WESTERN HEMISPHERE TRADE CORPORATIONS. "For the purposes of this chapter, the term 'western hemisphere trade corporation' means a domestic corporation all of whose business is done in any country or countries in North, Central, or South America, or in the West Indies, or in Newfoundland and which satisfies the following conditions: "(a) If 95 per centum or more of the gross income of such domestic corporation for the three-year period immediately preceding the close of the taxable year (or for such part of such period during which the corporation was in existence) was derived from sources other than sources within the United States; and "(b) If 90 per centum or more of its gross income for such period or such part thereof was derived from the active conduct of a trade or business." SEC. 142 . NONRECOGNITION OF LOSS AND DETERMINATION OF BASIS IN CASE OF CERTAIN RAILROAD REORGANIZATIONS. (a) NONRECOGNITION OF Loss IN RAILROAD REORGANIZATIONS.-Sec- tion 112 (b) (relating to the recognition of gain or loss upon the sale or exchange of property) is amended by inserting at the end thereof the following new paragraph: "(9) Loss NOT RECOGNIZED ON CERTAIN RAILROAD REORGANIZA- TIONS.- No loss shall be recognized if property of a railroad [56 STAT.

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