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PUBLIC LAW 594-JULY 21, 1952 "(19) RULES FOR APPLICATION OF PARAGRAPH

[66 S T A T. (18).—For

the

purposes of paragraph (18)— " (A) A branch shall be deemed to have been operated at a loss during a taxable year if the portion of the deductions 26 USC 23. under section 23 for such year which is determined, under regulations prescribed by the Secretary, to be the portion thereof properly allocable to the operation of such branch exceeds the portion of the gross income during the taxable year which is determined under such regulations to be the portion thereof properly allocable to the operation of such branch; and the amount of the loss shall be an amount equal to such excess. " (B) If the portion of the gross income determined to be properly allocable to the operation of the branch is a minus quantity, the amount of such excess shall be the sum of the deductions under section 23 determined to be properly allocable to the operation of the branch plus an amount equal to such minus quantity." 26u«;'ii4^note. SEC. 5. Section 319(c) of the Revenue Act of 1951 is amended to read as follows: "(c) EFFECTIVE DATE.—The amendments made by this section shall be effective on and after January 1, 1951.", .. Approved July 21, 1952.

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