Page:United States Statutes at Large Volume 56 Part 1.djvu/969

 56 STAT.] 77TH CONG. , 2D SESS.--H. 619-OCT. 21, 1942 941 the tax determined under subsection (a) for the short taxable year shall be reduced to an amount which is such part of the tax com- puted for the twelve-month period as the net income for the short taxable year is of the net income established for such twelve-month period. The taxpayer (other than a taxpayer to which the next sentence applies) shall compute the tax and file its return without the application of this subsection. If, prior to one year from the date of the beginning of the short taxable year, the taxpayer has disposed of substantially all its assets, in lieu of the twelve-month period provided in the preceding provision of this subsection, the twelve-month period ending with the close of the short taxable year shall be used. For the purposes of this subsection, the net income for the short taxable year shall not be placed on an annual basis under the provisions of subsection (a), and the net income for the twelve-month period used shall in no case be considered less than the net income for the short taxable year. The benefits of this subsection shall not be allowed unless the taxpayer, at such time as regulations prescribed hereunder require, makes application therefor in accord- ance with such regulations, and such application, in the case of a taxpayer required to file return without regard to this subsection, shall be considered a claim for credit or refund. The Commissioner, with the approval of the Secretary, shall prescribe such regulations as he may deem necessary for the application of this subsection." (c) TAXABLE YEARS TO WHICH AMENDMENTS APPLICABLE. - T he amendments made by this section shall be applicable to taxable years beginning after December 31,1939. SEC. 304. TECHNICAL AMENDMENTS MADE NECESSARY BY CHANGE IN BASE FOR CORPORATION TAX. Section 602 (relating to net income for purposes of the declared 2 n,p. value excess-profits tax) is amended to read as follows: Ia "SEC. 602. NET INCOME. "For the purposes of this subchapter the net income shall be the same as the net income for income tax purposes for the year in respect of which the tax under section 600 is imposed, computed without the deduction of the tax imposed by section 600, but with a credit against net income equal to the credit for dividends received provided in section 26 (b) of Chapter 1. TITLE IV-ESTATE AND GIFT TAXES Part I-Estate Tax SEC. 401. ESTATES TO WHICH AMENDMENTS APPLICABLE. Except as otherwise expressly provided, the amendments made by this Part shall be applicable only with respect to estates of decedents dying after the date of the enactment of this Act. SEC. 402. COMMUNITY INTERESTS. (a) TRANSFERS OF COMMUNITY PROPERTY IN CONTEMPLATION OF DEATH, ETC.-Section 811 (d) (relating to revocable transfers) is amended by adding at the end thereof the following new paragraph: "(5) TRANSFERs OF COMMUNIrr PROPERTY IN CONTEMPLATION OF DEATH, ETC. -For the purposes of this subsection and subsection (c), a transfer of property held as community property by the 53 Stat. 111 . 28 U. 8. 0., Bupp. I, Ante, p. 940. 83 Stat. 19. 26U. S. 0. 26(b). Ants, p. 807. 53 Stat. 121 . 26U.8 . 1811 (d).

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