Page:United States Statutes at Large Volume 56 Part 1.djvu/873

 56 STAT.] 77TH CONG., 2D SESS. -CH. 619-OCT. 21, 1942 (f) CAPITAL GAINS AND LOSSES OF COMMON TRUST FUNDS.- (1) INCOME OF PARTICIPANTS IN FUND. - (A) Section 169 (c) (1) (A) is amended to read as follows: "(A) As part of its gains and losses from sales or exchanges of capital assets held for not more than 6 months, its pro- portionate share of the gains and losses of the common trust fund from sales or exchanges of capital assets held for not more than 6 months." (B) Section 169 (c) (1) (B) is amended to read as follows: "(B) As part of its gains and losses from sales or exchanges of capital assets held for more than 6 months, its proportionate share of the gains and losses of the common trust fund from sales or exchanges of capital assets held for more than 6 months." (2) COMPUTATION OF COMMON TRUST FUND INcoME.--Section 169 (d) (1) and (2) are amended to read as follows: "(d) COMPUTATION OF COMMON TRUST FUND INCOME. -T he net income of the common trust fund shall be computed in the same manner and on the same basis as in the case of an individual, except that- "(1) There shall be segregated the gains and losses from sales or exchanges of capital assets; "(2) After excluding all items of gain and loss from sales or exchanges of capital assets, there shall be computed- "(A) An ordinary net income which shall consist of the excess of the gross income over deductions; or "(B) An ordinary net loss which shall consist of the excess of the deductions over the gross income;" (g) CAPITAL GAINS AND LOSSES OF PARTNERS.- (1) TAX OF PARTNERS.- (A) Section 182 (a) is amended to read as follows: "(a) As part of his gains and losses from sales or exchanges of capital assets held for not more than 6 months, his distributive share of the gains and losses of the partnership from sales or exchanges of capital assets held for not more than 6 months." (B) Section 182 (b) is amended to read as follows: "(b) As part of his gains and losses from sales or exchanges of capital assets held for more than 6 months, his distributive share of the gains and losses of the partnership from sales or exchanges of capital assets held for more than 6 months." (2) COMPUTATION OF PARTNERSHIP INCOME.- (A) Section 183 (b) (1) and (2) are amended to read as follows: "(b) SEGREGATION OF ITEMS.- "(1) CAPITAL GAINS AND LOSSES.-There shall be segregated the gains and losses from sales or exchanges of capital assets. "(2) ORDINARY NET INCOME OR LOSS. - After excluding all items of gain and loss from sales or exchanges of capital assets, there shall be computed- "(A) An ordinary net income which shall consist of the excess of the gross income over the deductions; or "(B) An ordinary net loss which shall consist of the excess of the deductions over the gross income." (h) CAPITAL LOSSES OF FOREIGN PERSONAL HOLDING COMPANIES. - Section 336 (c) is amended to read as follows: "(c) 1941 CAPITAL Loss CARRY-OvER DENIED. -The net income shall be computed without regard to section 117 (e) (2)." 845 53 Stat. 68. 26U. .C. l6 (o) (1) (A). 53 Stat. 69 . 26U.S.C.i169(o) (1) (B). 53 Stat. 69. 26 U.S. C.. 18 (d) (1), (2). 53 Stat. 09. 2 U. S.. i182 (a). A3 Stat. 70 . 26 U.S .C.C. 182 (b). 53 Stat. 70 . 26U. .C. 183(b) (1), (2). 53 Stat. 869. 26U.S.C.i336. AnUa,p. 84.

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