Page:United States Statutes at Large Volume 70.djvu/885

 70 S T A T. ]

PUBLIC LAW 880-AUG. 1, 1956

employment derived by h i m from such trade or business may, at his option, be deemed to be $1,200; and " ( l i i) in the case of a member of a pr^rtnership, if his distributive share of the gross income of the partnership derived from such trade or business (after such groos income has been reduced by the sum of all payments to which section 707(c) of the I n t e r n a l Revenue Code of 1954 applies) is not more than $1,800, his distributive share of income described in section 702(a)(9) of such Code derived from such trade or business may, at h i s option, be deemed to be an a m o u n t equal to 6 6 % percent of his distributive share of such gross income (after such gross income has been so r e d u c e d); or " ( i v) in the case of a member of a partnership, if his distributive share of the gross income of the partnership derived from such trade or business (after such gross income has been reduced by the sum of all payments to which section 707(c) of the I n t e r n a l Revenue Code of 1954 applies) is more than $1,800 and h i s distributive share (whether or not distributed) of income described in section 702(a)(9) of such Code derived from such trade or business (computed under this subsection without regard to this sentence) is less than $1,200, his distributive share of income described in such section 702(a)(9) derived from such trade or business may, at his option, be deemed to be $1,200. For purposes of the preceding sentence, gross income means— "(v) in the case of any such trade or business in which the income is computed under a cash receipts and disbursements method, the gross receipts from such trade or business reduced by the cost or other basis of property which was purchased and sold in carrying on such trade or business, adjusted (after such reduction) in accordance with the provisions of paragraphs (1) through (6) of this subsection; and "(vi) in the case of any such trade or business in which the income is computed under an accrual method, the gross income from such trade or business, adjusted in accordance with the provisions of paragraphs (1) through (6) of this subsection; and, for purposes of such sentence, if an individual (including a member of a partnership) derives gross income from more than one such trade or business, such gross income (including his distributive share of the gross income of any partnership derived from any such trade or business) shall be deemed to have been derived from one trade or business." (b) The amendment made by subsection (a) shall be effective with respect to taxable years ending on or after December 31, 1956.

82^9

^6 USC 707. 702,.

EffecUvity.

T I M E FOR F I L I N G REPORTS OF E A R N I N G S A N D FOR CORRECTING SECRETARY'S RECORDS

SEC. 107. (a) The second sentence of section 203(g)(1) of the Social Security Act (relating to report of earnings to Secretary) is amended by striking out "third" and inserting in lieu thereof "fourth". The amendment made by the preceding sentence shall apply in the case of monthly benefits under title II of such Act for months in any taxable year (of the individual entitled to such benefits) beginning after 1954. (b) Section 205(c)(1)(B) of such Act (relating to period of limitation for correcting records) is amended by striking out "two" and inserting in lieu thereof "three".

••2 USC 403.

^2 USC 405.

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