Page:United States Statutes at Large Volume 56 Part 1.djvu/911

 77TH CONG. , 2D SESS.-CH. 619-OCT. 21, 1942 "(3) Property with respect to which a deduction for depletion is allowable under section 23 (m) but not allowable under section 114 (b) (2), (3),or (4); "(4) Stock and securities of corporations not members of the system group of which the transferor is a member (other than stock or securities of a corporation of which the transferor is a subsidiary); "(5) Securities (other than stock) of corporations which are members of the system group of which the transferor is a member (other than securities of the transferor or of a corporation of which the transferor is a subsidiary); "(6) Stock of corporations which are members of the system group of which the transferor is a member (other than stock of the transferor or of a corporation of which the trans- feror is a subsidiary); "(7) All other remaining property of the transferor (other than stock or securities of the transferor or of a corporation of which the transferor is a subsidiary). The manner and amount of the reduction to be applied to particular property within any of the categories described in paragraphs (1) to (7), inclusive, shall be determined under regulations prescribed by the Commissioner with the approval of the Secretary." (d) AMENDMENT OF SECTION 373 (a). -Section 373 (a) is amended to read as follows: "(a) The term 'order of the Securities and Exchange Commission' means an order issued after May 28, 1938, by the Securities and Exchange Commission which requires, authorizes, permits, or approves transactions described in such order to effectuate the provisions of section 11 (b) of the Public Utility Holding Company Act of 1935, 49 Stat. 820 (U. S. C., title 15, sec. 79k (b)), which has become or becomes final in accordance with law." (e) AMENDMENT OF SECTION 373 (e) (1).- Section 373 (e) (1) is amended to read as follows: "(1) Any consideration in the form of evidences of indebted- ness owed by the transferor or a cancellation or assumption of debts or other liabilities of the transferor (including a continu- ance of encumbrances subject to which the property was trans- ferred) ;". (f) AMENDMENT OF SECTION 373 (e) (4). -Section 373 (e) (4) is amended to read as follows: "(4) Stock or securities which were acquired from a registered holding company or an associate company of a registered hold- ing company which acquired such stock or securities after Febru- ary 28, 1938, unless such stock or securities (other than obliga- tions described as nonexempt property in paragraph (1), (2), or (3)) were acquired in obedience to an order of the Securities and Exchange Commission or were acquired with the authoriza- tion or approval of the Securities and Exchange Commission under any section of the Public Utility Holding Company Act of 1935, 49 Stat. 820 (U. S . C ., title 15, sec. 79k (b));". (g) TECHNICAL AMENDMENT. -Section 371 (e) is amended by striking out "or (b)". (h) BAsIs. - Section 113 (a) (17) is amended to read as follows: "(17) PROPERTY ACQUIRED IN CONNECTION WITH EXCHANGES AND DISTRIBUTIONS IN OBEDIENCE TO CERTAIN ORDERS OF THE SECTUrrIES AND EXCHANGE COMMISSION. - If the property was acquired in a taxable year beginning before January 1, 1942, in any manner described in section 372 prior to its amendment by the Revenue Act of 1942, the basis shall be that prescribed in such section 53 Stat. 14, 45. 26U.S . C . §§23(m), 114 (b) (2), (3), (4). Ant, pp. 840, 841. 53 Stat. 102 . 26 U. S. C., Supp. I, § 373 (a). "Order of the Secu- rities and Exchange Commission. " 53 Stat. 102. 26U.S.C.1373(e) (1). 53 Stat. 103. 26U.S.C. t373(e) (4). 53 stat. 100. 26 U. S.C. 371 (e). 53 Stat. 43 . 26U. . C.. 113(a) (17). 53 Stat. 101. 26 U.. C. 137 Arte. D . 882. 883 56 STAT.]

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