Page:United States Statutes at Large Volume 65.djvu/552

 518

PUBLIC LAW 183—OCT. 20, 1951

[65 STAT.

"(1) A partial tax computed upon the net income determined without regard to any items of gross income or deductions properly allocable to the business of the life insurance department, at the rates and in the manner as if this section has not been enacted; and "(2) a partial tax computed upon the net income (as defined 26u*s.^c^§201 (c) ^^ section 201(c)(7)) of the life insurance department deter(7). • • ' mined without regard to any items of gross income or deductions not properly allocable to such department, at the rates and in the 26 u*Vc § 201 e < manner provided in Supplement G with respect to life insurance aeg' Companies. " (b) LiMrrATiONs OF SECTION,—The provisions of subsection (a) shall be applicable only if the life insurance department would, if it were treated as a separate corporation, qualify as a life insurance i U.1: a § 201 (b). company under section 201(b)." Ante.p.m. (b) TECHNICAL AMENDMENT.—Section 13 (relating to normal tax on corporations) is hereby amended by adding at the end thereof the following new subsection: "(f)

MUTUAL

SAVINGS

BANKS

CONDUCTING

LIFE

INSURANCE

BUSINESS.—For special tax, in lieu of the taxes imposed by this section Ante, p. 468. ^^^ section 15, in the case of- a mutual savings bank conducting a life Ante, p. 517. insurance business, see section 110." (c) EFFECTIVE DATE.—The amendments made by this section shall be applicable only with respect to taxable years beginning after December 31, 1951. SEC. 347. PUBLISHING BUSINESS CARRIED ON BY TAX-EXEMPT ORGANIZATION. 26u.^s.c^i422(b). (^) TREATMENT AS RELATED TRADE OR BUSINESS.—Section 422(b) Ante, p. 610. (relating to definition of unrelated trade or business) is hereby amended by adding at the end thereof the following: "If a publishing business carried on by an organization during a taxable year beginning before January 1, 1953, is, without regard to this sentence, an unrelated trade or business, but before the beginning of the third succeeding taxable year the business is carried on by it (or by a successor who acquired such business in a liquidation which would constitute a tax26u.^s.^a§ 112(b) ^^^^ exchange under section 112(b)(6)) in such manner that the (6). conduct thereof is substantially related to the exercise or performance by such organization (or such successor) of its educational or other 63 Stat. ^. purpose or function described in section 101(6), such publishing business shall not be considered, for the taxable year, as an unrelated trade or business." (b) EFFECTIVE DATE.—The amendment made by this section shall be applicable with respect to taxable years beginning after December 31, 1950, and prior to January 1, 1953. SEC. 348. DEDUCTION WITH RESPECT TO CERTAIN UNRELATED BUSINESS NET INCOME. 26U.*8.c*'§422(a). (^) UNRELATED BUSINESS NET INCOME.—Section 422(a) (relating to unrelated business net income) is hereby amended by adding at the end thereof the following: " I n the case of an organization described 64 &tat. 957. ^^^ ^ ^ in section 3813(a)(2) which is a member of a partnership all of whose ^ (2). ' members are organizations described in section 3813(a)(2), if a trade or business regularly carried on by such partnership is an unrelated trade or business with respect to such organization, such organization shall, for taxable years beginning before January 1, 1954, be allowed a deduction in an amount equal to the portion of the gross income of such partnership from such unrelated trade or business which such organization is required (by a provision of a written contract executed by

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