Page:United States Statutes at Large Volume 65.djvu/551

 65 STAT.]

PUBLIC LAW 183—OCT. 20, 1951

517

of subchapter A of chapter 9, or, in the case of services performed ^ u.^s/a§ i400 tt before January 1, 1951, who would be considered an employee if »««• his services were performed during 1951." (b) EFFECTIVE DATE.—The amendment made by this section shall be applicable with respect to taxable years beginning after December 31, 1938. SEC. 344. NONBUSINESS CASUALTY LOSSES. (a) REMOVAL or LIMITATION.—Section 122(d)(5) (relating to net

^u.^s.c!§i22(di

operating loss deduction) is hereby amended by inserting at the end (s)thereof the following new sentence: "This paragraph shall not apply with respect to deductions allowable for losses sustained after December 31, 1950, in respect of property, if the losses arise from fire, storm, shipwreck, or other casualty, or from theft." (b) EFFECTIVE DATE,—The amendment made by this section shall be applicable in computing the net operating loss deduction for taxable years ending after December 31, 1948. SEC. 345. ABATEMENT OF TAX ON CERTAIN TRUSTS FOR MEMBERS OF ARMED FORCES DYING IN SERVICE. I n the case of a trust which accumulated income for a beneficiary who died on or after December 7, 1941, and before January 1, 1948, while in active service as a member of the military or naval forces of the United States or of any of the other United Nations, there shall be allowed as a deduction in computing the net income of such trust (in addition to other deductions allowable under sections 23 and 162 of the Internal Revenue Code) income of the trust for any taxable year (before diminution for income tax) which was accumulated for such benec

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^u.^s.'a'§T23,i62. ^"/«. PP; ^SS, t^490, 491, 499, 515, 500.

riciary it— (1) the income accumulated was for a taxable year of the trust which ended with or within a taxable year (ending on or after December 7, 1941) of such beneficiary during any part of which he was a member of such military or naval forces, or, in the case of the taxable year of the trust during which such beneficiary died, the income accumulated was for the period in such taxable year prior to the death of such beneficiary; and (2) the amount of such accumulated income was, without regard to this section, taxable to the trust, and (3) the income for such taxable year accumulated for the beneficiary, if not distributed to him prior to his death, was payable by the trust at or after his death only to his estate, spouse, or lineal ancestors or descendants. SEC. 346. LIFE INSURANCE DEPARTMENTS OF MUTUAL SAVINGS BANKS. (a) COMPUTATION OF TAX.—Supplement A of chapter 1 is hereby iu^s.^c. § loi e ^ amended by adding at the end thereof the following new section: m"SEC. 110. MUTUAL SAVINGS BANKS CONDUCTING LIFE INSURANCE BUSINESS. " (a) ALTERNATIVE TAX.—In the case of a mutual savings bank not having capital stock represented by shares, authorized under State law to engage in the business of issuing life insurance contracts, and which conducts a life insurance business in a separate department the accounts of which are maintained separately from the other accounts of the mutual savings bank, there shall be levied, collected, and paid, in lieu of the taxes imposed by sections 13 and 15, or section 117(c)(1), 47^"^'' PP- ^^' *^' a tax consisting of the sum of the partial taxes determined under Po«<,p. 518. paragraphs (1) and (2):

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