Page:United States Statutes at Large Volume 72 Part 1.djvu/1680

 1638

PUBLIC LAW 85-866-SEPT. 2, 1958

[72 S T A T.

(e) EFFECTIVE DATES.—The amendments made by subsections (a) and (c) shall apply with respect to taxable years beginning after December 31, 1953, and ending after August 16, 1954. The amendments made by subsection (b) shall apply with respect to taxable years beginning after December 31, 1957, except that such amendments shall, at the election of the taxpayer made in conformity with such amendments, apply with respect to taxable years beginning after December 31, 1953, and ending after August 16, 1954. The amendment made by subsection (d) shall apply with respect to taxable years beginning after December 31, 1957, except that with respect to any taxpayer such amendment shall, at the election of the taxpayer, apply with respect to taxable years beginning after December 31, 1953, and ending after August 16, 1954. SEC. 38. INVESTMENT COMPANIES FURNISHING CAPITAL TO DEVELOPMENT CORPORATIONS. 26 USC 851.

26 USC 852.

(a) T I M E FOR CERTIFICATION.—The first sentence of section 851(e)

(1) (relating to regulated investment companies furnishing capital to development corporations) is amended by striking out "not less than 60 days" and inserting in lieu thereof "not earlier than 60 days", (b) CLERICAL AMENDMENT.—Section 851(e)(2) (relating to limitation with respect to regulated investment companies furnishing capital to development corporations) is amended by striking out "issues" and inserting in lieu thereof "issuer". SEC. 39. TRANSACTIONS IN REGULATED INVESTMENT COMPANY SHARES AROUND TIME OF DISTRIBUTING CAPITAL GAIN DIVIDENDS. (a) Loss ON STOCK HELD LESS T H A N 31 DAYS.—Section 852(b) (relating to taxation of regulated investment companies and their !»hareholders) is amended by adding at the end thereof the following new paragraph: " (4) L o s s ON SALE OR EXCHANGE OF STOCK HELD LESS THAN 31 DAYS.—If—

26 USC 871.

" (A) under subparagraph (B) or (D) of paragraph (3) a shareholder of a regulated investment company is required, with respect to any share, to treat any amount as a long-term capital gain, and " (B) such share is held by the taxpayer for less than 31 days, then any loss on the sale or exchange of such share shall, to the extent of the amount described in subparagraph (A) of this paragraph, be treated as loss from the sale or exchange of a capital asset held for more than 6 months. For purposes of this paragraph, the rules of section 246(c)(3) shall apply in de termming whether any share of stock has been held for less than 31 days; except that '30 days' shall be substituted for the number of days specified in subparagraph (B) of section 246(c)(3). " (b) EFFECTIVE DATE.—The amendment made by subsection (a) shall apply with respect to taxable years ending after December 31, 1957, but only with respect to shares of stock acquired after December 31, 1957. SEC. 40. TAX ON NONRESIDENT ALIENS. (a) EMPLOYEE ANNUITIES.—Section 871(a)(1) (relating to 30 percent tax in case of nonresident aliens) is amended by inserting ''section 403(a)(2),'^ after "section 402(a)(2),". (b)

26 USC 1441.

CONFORMING AMENDMENT.—Subsections

(b)

and

(c)

(5)

of section 1441 (relating to withholding of tax on nonresident aliens) are each amended by inserting "section 403(a)(2)," after "section 402 (a)(2),".

�