Page:United States Statutes at Large Volume 65.djvu/581

 65 STAT.]

PUBLIC LAW 183—OCT. 20, 1951

547

for an increase in inadmissible assets, then the net new capital addition for the taxable year shall not be less than the excess of the amount determined under the first sentence of subsection (b) over an amount I ' l l

,-1

•

l

i

t

'

• •

T

'

-

l

i

r

1

which bears the same ratio to the increase m inadmissible assets for the taxable year, determined under section 435(g)(5), as the amount computed under such first sentence bears to such increase in total assets for the taxable year." (c) AMENDMENT OF SECTION 435 (f).—Section 435(f) (relating to capital additions in base period) is hereby amended as follows: (1) By inserting immediately after the word "reduced" in paragraph (1) thereof the following: "(but not below zero)". (2) By adding at the end of paragraph (1) thereof the follow-

^n**Q" n^LQO,> ^, x ^ U. B. O. j 4d8 (D).

Stat. \\h2.

" For special rule in the case of banks, see paragraph (6). " (3) By renumbering paragraph (6) as paragraph (7), and by adding immediately after paragraph (5) the following new paragraph: "(6) YEARLY BASE PERIOD CAPITAL OF BANKS.—In the case of a bank (as defined in section 104), the yearly base period capital for ^"<«' P- *8Iany taxable year shall be determined as follows: " (A) A tentative yearly base period capital shall be computed under paragraph (1) without regard to paragraph (1) (A). " (B) The tentative yearly base period capital so determined shall be reduced by the amount determined under section 440(b) (relating to inadmissible assets). For the pur- 26u.*s. ".^§'440(b) pose of this subparagraph, the computation under section 440 (b) shall include only the daily amounts (described in such section) for the first day of such taxable year.** (d) EFFECTIVE DATE OF SUBSECTION (c)(3).—The amendment made by subsection (c)(3) (adding a new paragraph (6) to section 435(f)) ^"^''"• shall be applicable with respect to taxable years beginning on or after the date of the enactment of this Act, and, at the election of the tax payer made in accordance with regulations prescribed by the Secretary, shall be applicable to all taxable years ending after June 30, 1950. SEC. 507. DECREASE IN INADMISSIBLE ASSETS. Section 435(g) (relating to net capital addition or reduction) is ^u."!. 0.^435(g). hereby amended as follows: Ami, p. 546. (a) By adding at the end of paragraph (1) thereof the following: "For further adjustment with respect to the amount determined under the preceding provisions of this paragraph, see paragraph Infra. (9)." (b) By adding immediately after paragraph (8), as added by section 506 of this Act, the following new paragraphs: ^'^'' P- ^ • "(9)

DECREASE I N INADMISSIBLE ASSETS.—

" (A) Except as otherwise provided in subparagraph (B) (relating to banks), the excess of the amount computed under paragraph (2)(A) or (B), whichever is applicable to the taxpayer (whether or not any amount is determined under the first sentence of paragraph (2)), over the amount, if any, computed under the first sentence of paragraph (2) shall be considered the net capital addition for the taxable year or shall be added to the net capital addition otherwise determined under paragraph (1), as the case may be. The amount of the excess so determined shall be subject to the exceptions and limitations provided in paragraph (10).

Po«<, P.MS.

�