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PUBLIC LAW 85-866-SEPT. 2, 1958

[72 S T A T.

" (2) LIMITATIONS.— " (A) PURCHASE OF

STOCK.—Paragraph (1) shall not apply to the purchase of stock in the acquisition of control of a corporation described in subsection (a)(3)(A). " (B) CONVERSIONS BEFORE JANUARY i, 1958.—Paragraph

26 USC 1034.

(1) shall apply with respect to the compulsory or involuntary conversion of any real property only if the disposition of the converted property (within the meaning of subsection (a)(2)) occurs after December 31, 1957." (b) PERSONAL RESIDENCES.—Section 1034(i) (relating to special rule for involuntary conversions of residences) is amended by renumbering paragraph (2) as (3), and by inserting after paragraph (1) the following new paragraph: " (2) CONDEMNATIONS AFTER DECEMBER 31, 1957.—For purposes

26 USC 1053.

26 USC 1071.

of this section, the seizure, requisition, or condemnation of property, or the sale or exchange of property under threat or imminence thereof, if occurring after December 31, 1957, shall, at the election of the taxpayer, be treated as the sale of such property. Such election shall be made at such time and in such manner as the Secretary or his delegate shall prescribe by regulations." SEC. 47. PROPERTY ACQUIRED BEFORE MARCH 1, 1913. The first sentence of section 1053 (relating to basis for determining gain in the case of property acquired before March 1, 1913) is amended by striking out "under this part" and inserting in lieu thereof "under this subtitle". SEC. 48. POSTPONEMENT OF GAIN FROM SALE OR EXCHANGE TO EFFECTUATE FEDERAL COMMUNICATIONS COMMISSION POLICIES. (a) REQUIREMENT or CHANGE I N POLICY.—Section 1071(a)

(re-

lating to gain from sale or exchange to effectuate policies of Federal Communications Commission) is amended by striking out "necessary or appropriate to effectuate the policies of the Commission" and inserting in lieu thereof "necessary or appropriate to effectuate a change in a policy of, or the adoption of a new policy by, the Commission". (b) EFFECTIVE DATE.—The amendment made by subsection (a) shall apply with respect to any sale or exchange after December 31,

1957. 26 USC 1231.

26 USC 1232.

SEC. 49. CASUALTY LOSSES SUSTAINED UPON CERTAIN UNINSURED PROPERTY. (a) TREATMENT AS ORDINARY Loss.—Section 1231(a) (relating to property used in the trade or business and involuntary conversions) is amended by adding at the end thereof the following new sentence: "In the case of any property used in the trade or business and of any capital asset held for more than 6 months and held for the production of income, this subsection shall not apply to any loss, in respect of which the taxpayer is not compensated for by insurance in any amount, arising from fire, storm, shipw reck, or other casualty, or from theft." (b) EFFECTIVE DATE.—The amendment made by subsection (a) shall apply to taxable years beginning after December 31, 1957. SEC. 50. BONDS ISSUED AT DISCOUNT. (a) TREATMENT OF GAIN.—The first sentence of section 1232(a) (2)(A) (relating to treatment of gain on sale or exchange of certain bonds and other evidences of indebtedness) is amended by striking out "which does not exceed an amount which bears the same ratio to the original issue discount (as defined in subsection (b)) as the number of complete months that the bond or other evidences of indebtedness was held by the taxpayer bears to the number of complete months

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