Page:United States Statutes at Large Volume 56 Part 1.djvu/931

 56 STAT.] 77TH CONG., 2D SESS. -CH. 619--OCT. 21, 1942 SEC. 206. TECHNICAL AMENDMENTS MADE NECESSARY BY CHANGE IN BASE FOR CORPORATION TAX. 903 (a) DISALLOWANCE OF CREDIT IN COMPUTING EXCESS-PROFITS NET INCOME.- (1) Section 711 (a) (1) (A) (relating to adjustment for taxes 54stat.970. in computing excess profits net income under the income credit) I, 711 (a) (1(S). is amended to read as follows: "(A) Income Subject to Excess Profits Tax.- In comput- ing such normal-tax net income the credit provided in section 26 (e) (relating to income subject to the tax imposed by this An, p. 80 subchapter) shall not be allowed ;". (2) Section 711 (a) (2) (C) (relating to adjustment for taxes 54Sta., 77. in computing excess-profits net income under the invested capital 711 (a) (2) (C). credit) is amended to read as follows: "(C) Income Subject to Excess Profits Tax.- In comput- ing such normal-tax net income the credit provided in section 26 (e) (relating to income subject to the tax imposed by this An, . 806. subchapter) shall not be allowed;". (b) RULES FOR COMPUTATION OF CHARITABLE, ETC., D ED UCTIONS IN COMPUTING EXCESS PROFITS NET INCOME REPEALED. - (1) Section 711 (a) (1) (G) (relating to the deduction for 5sstat.7M. charitable contributions, etc., in computing excess profits net 721s( c(0).PP. income under the income credit) is repealed. (2) Section 711 (a) (2) (I) (relating to the deduction for 2S t.cS ip. charitable contributions, etc., in computing excess profits net § 711 (a) (2) (I). income under the invested capital method) is repealed. SEC. 207. CAPITAL GAINS AND LOSSES IN THE COMPUTATION OF EXCESS PROFITS NET INCOME. (a) EXCESS PROFITS CREDIT COMPUTED UNDER INCOME CBEDIT.- Sec- 261 St. 711 (a) 26 U.S.C. i1 (a) tion 711 (a) (1) (B) is amended to read as follows: (1) (B). "(B) Gains and Losses From Sales or Exchanges of Capi- P p '. 90 tal Assets.- There shall be excluded gains and losses from sales or exchanges of capital assets held for more than 6 months. (b) RETIREMENT OF LONG-TERM BONDS.- Section 711 (a) (1) (C) is 4 Stat. 71 6 1 26U.S.C.§711(a) amended by striking out "eighteen months" and inserting in lieu there- (1)(c). of "6 months". (c) EXCESS PROFITS CREDIT COMPUTED UNDER INVESTED CAPITAL CREDIT. - Section 711 (a) (2) (D) is amended to read as follows: s^ *9771 "(D) Gains and Losses From Sales or Exchanges of Capi- (2) (1)). tal Assets.-There shall be excluded gains and losses from P.94. sales or exchanges of capital assets held for more than 6 months." (d) RETIREMENT OF LONG-TERM BoNDs.- Section 711 (a) (2) (E) is 4 Stat. (a) amended by striking out "eighteen months" and inserting in lieu (2) . thereof "6 months". (e) TAXABLE YEARS IN BASE PERIOD. -Section 711 (b) -(1) (B) is t. 711( amended to read as follows: (1)(B). "(B) Gains and Losses From Sales or Exchanges of Capital Po' P. 90 Assets.- There shall be excluded gains and losses from sales or exchanges of capital assets held for more than 6 months." (f) RETIREMENT OF LONG-TERM BONDS.-Section 711 (b) (1) (C) is 26 Sta. 9 711(b) amended by striking out "eighteen months" and inserting in lieu there- ) (c). of "6 months". (g) CAPITAL GAINS AND LOSSES.- Section 711 (b) (2) is amended S aSr' (b) to read as follows: (2). "(2) CAPITAL GAINS AND LOSSES.- For the purposes of this sub- section the normal-tax net income and the special-class net

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