Page:United States Statutes at Large Volume 68A.djvu/105

 CH. 1—NORMAL TAXES AND SURTAXES

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(B) that portion of the net operating loss for such year computed under section 122 of the Internal Revenue Code of 1939 as if this section had not been enacted which the number of days in the loss year before January 1, 1954, bears to the total number of days in such year. (2) The amount of any net operating loss for such year which shall be carried to the second preceding taxable year is the amount which bears the same ratio to such net operating loss as the number of days in the loss year after December 31, 1953, bears to the total number of days in such year. In determining the amount carried to any other taxable year, the reduction for the second taxable year preceding the loss year shall not exceed the portion of the net operating loss which is carried to the second preceding taxable year, (g) SPECIAL TRANSITIONAL RULES. — (1) LOSSES FOR TAXABLE YEARS ENDING BEFORE JANUARY

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1954.—For purposes of this section, the determination of the taxable years ending after December 31, 1953, to which a net operating loss for any taxable year ending before January 1, 1954, may be carried shall be made under the Internal Revenue Code of 1939. (2) L O S S E S FOR T A X A B L E Y E A R S E N D I N G A F T E R D E C E M B E R 3 1,

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1953.—For purposes of section 122 of the Internal Revenue Code of 1939— (A) the determination of the taxable years ending before January 1, 1954, to which a net operating loss for any taxable year ending after December 31, 1953, may be carried shall be made under subsection (b)(1)(A) of this section; and (B) in determining the amount of the carryback to the first taxable year preceding the first taxable year ending after December 31, 1953, the portion of the net operating loss carried to such year shall be such net operating loss reduced by— (i) the net income for the second preceding taxable year computed as if the second sentence of section 122(b)(2)(B) of the Internal Revenue Code of 1939 applied, or (ii) if smaller, the portion of the net operating loss which by reason of subsection (f) of this section is carried to the second preceding taxable year. (3) E X C E S S PROFITS TAX NOT AFFECTED.—For purposes of

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, chapter D of chapter 1 of the Internal Revenue Code of 1939, excess , profits net income shall be computed as if this section had not been enacted and as if section 122 of such Code continued to apply to . taxable years to which this subtitle applies, (h) CROSS R E F E R E N C E S. — (1) For treatment of net operating loss carryovers in certain corporate ( acquisitions, see section 381. (2) For special limitation on net operating loss carryovers in case of a corporate change of ownership, see section 382. SEC. 173. CIRCULATION EXPENDITURES.

Notwithstanding section 263, all expenditures (other than expenditures for the purchase of land or depreciable property or for the acquisition of circulation through the purchase of any part of the business of another publisher of a newspaper, magazine, or other periodical) to establish, maintain, or increase the circulation of a newspaper, maga§ 173

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