Page:United States Statutes at Large Volume 68A.djvu/383

 CH. 1—NORMAL TAXES AND SURTAXES

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this section as though they specifically referred to this section. If, for any taxable year ending after June 30, 1950, and before January 1, 1953, subparagraph (C) of such section 22(d)(6) applies with respect to involuntary liquidations of goods of the same class subject to both subparagraph (A) of such section and to this section, the involuntary liquidations of such goods subject to this section shall be considered for the purpose of such subparagraph (C) as having occurred before the involuntary liquidations of such goods subject to subparagraph (A) of such section 22(d)(6). For the purpose of this subsection, and with respect to the taxable years covered by this section, the reference in subparagraph (E) of such section 22(d)(6) to section 734(d) shall be taken as a reference to section 452(d) of the Internal Revenue Code of 1939, and, with respect to any taxable year to which any provision of the Internal Revenue Code of 1939 may not be applicable, references in such subparagraph to such provision shall, where applicable, be deemed a reference to the corresponding provision of the Internal Revenue Code of 1954. PART IV—WAR LOSS RECOVERIES Sec. Sec. Sec. Sec.

1331. War loss recoveries. 1332. Inclusion in gross income of war loss recoveries. 1333. Tax adjustment measured by prior benefits. 1334. Restoration of value of investments referable to destroyed or seized property. Sec. 1335. Election by taxpayer for application of section 1333. Sec. 1336. Basis of recovered property. Sec. 1337. Applicable rules. SEC. 1331. WAR LOSS RECOVERIES.

On the recovery in the taxable year of any money or property in respect of property considered under section 127(a) of the Internal Revenue Code of 1939, as destroyed or seized, the amount of such recovery shall be included in gross income to the extent provided in section 1332, unless section 1333 applies to the taxable year pursuant to an election made by the taxpayer under section 1335. SEC. 1332. INCLUSION IN GROSS INCOME OF WAR LOSS RECOVERIES. (a) AMOUNT OF RECOVERY.—The amount of the recovery of any

money or property in respect of property considered under section 127 (a) of the Internal Revenue Code of 1939, as destroyed or seized, shall be an amount equal to the aggregate of such money and the fair market value of such property, determined as of the date of the recovery. (b) AMOUNT OF G A I N INCLUDIBLE.— (1) PORTION EXCLUDED FROM GROSS INCOME.—To the extent

that the amount of the recovery plus the aggregate of the amounts of previous such recoveries do not exceed that part of the aggregate of the allowable deductions in prior taxable years on account of the destruction or seizure of property described in such section 127 (a) which did not result in a reduction of any tax of the taxpayer under chapter 1 or 2 of the Internal Revenue Code of 1939, such amount shall not be includible in gross income and shall not be deemed gain on the involuntary conversion of property as a result of its destruction or seizure. § 1332(b)(1)

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