Page:United States Statutes at Large Volume 65.djvu/769

 65 STAT.]

PUBLIC LAW 251—OCT. 31, 1951

735

the taxpayer. Such application shall be made at such time and in such manner as the Secretary may by regulations prescribe. " (C) Time for Assessment of Deficiency Attributable to Gain Upon Conversion.—If a taxpayer has made the election provided in subparagraph (A), then (i) the statutory period for the assessment of any deficiency, for any taxable year in which any part of the gain upon such conversion is realized, attributable to such gain shall not expire prior to the expiration of three years from the date the Secretary is notified by the taxpayer (in such manner as the Secretary may by regulations prescribe) of the replacement of the converted property or of an intention not to replace^ and (ii) such deficiency may be assessed prior to the expiration of such threeryear period notwithstanding the provisions of section 272(f) or the pro- 26 U.S.C.,§ 272 (f). f^n^s o visions of any other law or rule of law which would otherwise prevent such assessment. " (D) Time for Assessment of Other Deficiencies Attributable to Election.—If the election provided in subparagraph (A) is made by the taxpayer and such other property or such stock was purchased prior to the beginning of the last taxable year in which any part of the gain upon such conversion is realized, any deficiency, to the extent resulting from such election, for any taxable year ending before such last taxable year may be assessed (notwithstanding the provisions of section 272(f) or 275 or the provisions of any other law or rule of law which would otherwise prevent such assessment) at any time before the expiration of the period within which a deficiency for such last taxable year may be assessed. This subsection shall not apply, in the case of property used by the taxpayer as his principal residence, if the destruction, theft, seizure, requisition, or condemnation of residence, or the sale or exchange of such residence under threat or imminence thereof, occurred after December 31, 1950." (b) Section 276 of the Internal Revenue Code (relating to period of ^ u^s.^c! s 276. limitation upon assessment and collection) is hereby amended by adding at the end thereof the following: " (f) INVOLUNTARY CONVERSION.—In the case of a deficiency described in section 112(f)(3)(C) or (D), such deficiency may be assessed ^»<«.P-733. at any time prior to the expiration of the time therein provided." SEC. 2. Paragraph (9) of section 113(a) of the Int-ernal Revenue ^u^s.^c § n 3 (a) U.S.C. Code (relating to unadjusted basis of property acquired as the result (s)of an involuntary conversion) is hereby amended by striking out "section 112(f) " and inserting in lieu thereof "section 112(f)(1) or (2)", and by adding at the end of such paragraph the following new sentence: " I n the case of property purchased by the taxpayer which resulted, under the provisions of section 112(f)(3), in the nonrecognition of any part of the gain realized as the result of a compulsory or involuntary conversion, the basis shall be the cost of such property decreased in the amount of the gain not so recognized; and if the property purchased consists of more than one piece of property, the basis determined under this sentence shall be allocated to the purchased properties in proportion to their respective costs." SEC. 3. The amendments made by the first two sections of this Act ig^SStiras**^**^^' shall be applicable only with respect to taxable years ending after December 31, 1950, except that the provisions of section 112(f)(3), and the provisions of section 113(a)(9), of the Internal Revenue Code as amended by this Act shall also be applicable to any taxable year ending prior to January 1, 1951, in which (a) any gain was real76100 O - 52 (PT. I) - 49

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