Page:United States Statutes at Large Volume 62 Part 1.djvu/146

 PUBLIC LAWS-CH. 168 -APR. 2, 1948 53Stat. 5. 26U.S.0.§11,12 (b) (d). Ante, p. 111. 55 Stat. 689. 26 U.S .C .. §400- 404. Post, p. 128. 66 Stat. 825 . 26U.S.C.123(x). 53 Stat. 18 . 26 U.S. O. § 25(b). Ante, p. 112. Ante, p. 115. Ante, pp. 114, 115; supra. Post, p. 136. 56 Stat. 941, 942, 945. 26U.S.. C. 811 (d) (5), (e) (2), (g) (4); Supp. I, j 811 note. 63 Stat. 118 . 26 U.S..C. 800- 938; Supp. I, II 811, 812, 861. Post, p. 117 et seq. "(5) DETERMINATION OF STATUS.-For the purposes of this section- "(A) the status as husband and wife of two individuals having taxable years beginning on the same day shall be determined- "(i) if both have the same taxable year-as of the close of such year; and "(ii) if one dies before the close of the taxable year of the other-as of the time of such death; and "(B) an individual who is legally separated from his spouse under a decree of divorce or of separate maintenance shall not be considered as married. "(6) TAX IN CASE OF JOINT RETURN.- For determination of com- bined normal tax and surtax under section 11 and section 12 (b) in case of joint return under this subsection, see section 12 (d). For tax in case of joint return of husband and wife electing to pay the tax under Supplement T, see section 400." SEC. 304. DEDUCTION FOR MEDICAL EXPENSES. Section 23 (x) of the Internal Revenue Code (relating to deduction of medical, etc., expenses) is hereby amended by striking out the second and third sentences thereof and inserting in lieu thereof the follow- ing: "The deduction shall not be in excess of $1,250 multiplied by the number of exemptions allowed under section 25 (b) for the taxable year (exclusive of exemptions allowed under section 25 (b) (1) (B) or (C)), with a maximum deduction of $2,500, except that the maximum deduction shall be $5,000 in the case of a joint return of husband and wife under section 51 (b)." SEC. 305. TAXABLE YEARS TO WHICH AMENDMENTS APPLICABLE. The amendments made by sections 301, 302, 303, and 304 shall be applicable with respect to taxable years beginning after December 31,1947. The amendment made by section 303 shall also be applicable to taxable years of both husband and wife beginning on the same day in 1947 if at least one of such taxable years ends in 1948. For treat- ment of taxable years beginning in 1947 and ending in 1948, see sec- tion 601. PART II-ESTATE TAX Subpart 1-Repeal of 1942 Community Property Amendments SEC. 351. REPEAL OF COMMUNITY PROPERTY ESTATE TAX AMEND- MENTS. (a) Effective with respect to estates of decedents dying after Decem- ber 31,1947, sections 811 (d) (5), 811 (e) (2) and 811 (g) (4) of the Internal Revenue Code (relating to community property) are hereby repealed. (b) Such section 811 (e) is further amended- (1) by striking out of the heading of such subsection the words "AND COMMnTNITY"; and (2) by striking out of paragraph (1) the following: "JOINT INTERESTS.--" (c) Notwithstanding the repeal of sections 811 (d) (5), 811 (e) (2), and 811 (g) (4) provided in subsection (a), the taxes imposed under chapter 3 of the Internal Revenue Code upon the transfer of the net 116 [62 STAT.

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