Page:United States Statutes at Large Volume 72 Part 1.djvu/1673

 72 S T A T. ]

PUBLIC LAW 8 5 - 8 6 6 - S E P T. 2, 1958

1631

For purposes of paragraph (3), the determination as to whether any amount loaned by the trust to the employer is loaned without the receipt of adequate security shall be made without regard to subsection (h). " (c) EFFECTIVE DATE.—

(1) IN GENERAL,—Except as provided in paragraph (2), the amendment made by subsection (a) shall apply with respect to taxable years ending after March 15, 1956. The amendment made by subsection (b) shall apply with respect to taxable years ending after the date of the enactment of this Act, but only with respect to periods after such date. (2) EXCEPTIONS.—Nothing in subsection (a) shall be construed to make any transaction a prohibited transaction which, under announcements of the Internal Revenue Service made with respect to section 503(c)(1) of the Internal Revenue Code of 1954 before 26 USC 503. the date of the enactment of this Act, would not constitute a prohibited transaction. I n the case of any bond, debenture, note, or certificate or other evidence of indebtedness acquired before the date of the enactment of this Act by a trust described in section 401 (a) of such Code which is held on such date, paragraphs (2) 26 USC 401. and (3) of section 503(h) of such Code shall be treated as satisfied if such requirements would have been satisfied if such obligation had been acquired on such date of enactment. (d) CORRECTION or CROSS REFERENCES.—Sections 2055(e), 2106 (a) 2106^512' ^°^^' (2)(E), and 2522 (c) are each amended by striking out "sections 504" and inserting in lieu thereof "sections 503".

SEC. 31. CORPORATIONS IMPROPERLY ACCUMULATING SURPLUS. (a)

ADJUSTMENTS TO TAXABLE INCOME FOR CHARITABLE CONTRIBU-

TIONS.—Section 535(b)(2) (relating to adjustments to taxable income to determine accumulated taxable income for purposes of the tax on corporations improperly accumulating surplus) is amended by striking out "the limitation in". (b)

26 USC 535.

ADJUSTMENTS TO TAXABLE INCOME FOR LONG-TERM CAPITAL

GAINS.—Section 535(b)(6)(B) (relating to determination of accumulated taxable income) is amended to read as follows: " (B) such taxes computed for such year without including in taxable income the excess of the net long-term capital gain for the taxable year over the net short-term capital loss for such year (determined with regard to the capital loss carryover provided in section 1212)." SEC. 32. UNDISTRIBUTED PERSONAL HOLDING COMPANY INCOME. (a) CHARITABLE CONTRIBUTIONS.—Section 545(b)(2) (relating to

26 USC 54s.

adjustments to taxable income to determine undistributed personal holding company income) is amended to read as follows: " (2) CHARITABLE CONTRIBUTIONS.—The deduction for chari-

table contributions provided under section 170 shall be allowed, but in computing such deduction the limitations in section 170(b) (1)(A) and (B) shall apply, and section 170(b)(2) shall not apply. For purposes of this paragraph, the term 'adjusted gross income' when used in section 170(b)(1) means the taxable income computed with the adjustments (other than the 5-percent limitation) provided in the first sentence of section 170(b)(2) and without deduction of the amount disallowed under paragraph (8) of this subsection?" (b) N E T OPERATING Loss.—Section 545(b)(4) (relating to adjustments to taxable income to determine undistributed personal holding company income) is amended by inserting before the period at the end thereof "computed without the deductions provided in part VIII (except section 248) of subchapter B ". 98395-59-PT. 1-103

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