Page:United States Statutes at Large Volume 58 Part 1.djvu/66

 PUBLIC LAWS--CH. 63 -FEB. 25, 1944 "Date of the termi- nation of hostilities in the present war." ning on or after the date of the termination of hostilities in the present war. For the purposes of this subsection the term "date of the termi- nation of hostilities in the present war" means the date proclaimed by the President as the date of such termination, or the date specified in a concurrent resolution of the two Houses of Congress as the date of such termination, whichever is the earlier. SEC. 125. EXCLUSION FROM GROSS INCOME OF CERTAIN COST-OF- LIVING ALLOWANCES PAID TO CIVILIAN OFFICERS AND EMPLOYEES OF THE GOVERNMENT STATIONED OUTSIDE CONTINENTAL UNITED STATES. 26sta4. i e.; (a) IN GENERAL.- Section 116 (relating to exclusions from gross Supp. m, § 116. income) is amended by adding at the end thereof a new subsection to Ante, p. 32. read as follows: oren ervie. ) In the case of a cler or employee in the Foreign Service of the United States, amounts received as cost-of-living allowances under 22Sta.S 10 SM. authority of section 3, as amended, of the Act of February 23, 1931; and in the case of an ambassador, minister, diplomatic, consular, or Foreign Service officer, amounts received as post allowances under the st.S C5 12. authority of section 12, as amended and renumbered, of the Act of May 24, 1924; and in the case of other civilian officers or employees of the Government of the United States stationed outside continental United States, amounts received as cost-of-living allowances in accord- ance with regulations approved by the President." (b) TAXABLE YaRA TO WmICH APUmcABLE.-The amendment made by subsection (a) shall be applicable with respect to taxable years beginning after December 31, 1942. SEC. 126. NONRECOGNITION OF LOSS ON CERTAIN RAILROAD REOR- GANIZATIONS MADE RETROACTIVE TO 1939. 66 Stat. 838. 26 U. S. C., Supp. 112 (b) (9). 56 Stat. 839. 26 U. S. C., Supp. Im, 113 (a) (20). 56 Stat. 840 . 26 U. S. C., Supp. m, I 112, 113 notes. 53 Stat. 50. 28U. .0.1117; Sunp. m, § 117. Pwt, pp. 47, 236. (a) AMENDMENT OF SrECIN 112 (b) (9).-Section 112 (b) (9) (relating to nonrecognition of loss on certain railroad reorganiza- tions) is amended by striking out "1939" and inserting in lieu thereof "1938". (b) AMENDMENT OF SECrION 113 (a) (2 0).- Section 113 (a) (20) (relating to basis of property acquired by railroad corporations in certain railroad reorganizations) is amended by striking out "1939" and inserting in lieu thereof "1938". (c) AMENDMENT OF SECTION 142 (d) OF THE REVENE ACT OF 1942. - Section 142 (d) of the Revenue Act of 1942 (prescribing the taxable years to which such section is applicable) is amended by striking out "1939" and inserting in lieu thereof "1938". SEC. 127. GAIN OR LOSS UPON THE CUTTING OF TIMBER. (a) IN GmENa. --Section 117 (relating to capital gains and losses) is amended by inserting at the end thereof the following new sub- section: "(k) Gnr OR Loss UPON TIE CTu'IG OF TIMBE. - (1) If the taxpayer so elects upon his return for a taxable year, the cutting of timber (for sale or for use in the taxpayer's trade or business) during such year by the taxpayer who owns, or has a contract right to cut, such timber (providing he has owned such timber or has held such contract right for a period of more than six months prior to the beginning of such year) shall be considered as a sale or exchange of such timber cut dur- ing such year. In case such election has been made, gain or loss to the taxpayer shall be recognized in an amount equal to the 46 [58 STAT.

�