Page:United States Statutes at Large Volume 76.djvu/1025

 76 STAT. ]

PUBLIC LAW 87-834-OCT. 16, 1962

977

amount expended for meals and lodging)" and inserting in lieu thereof "(including amounts expended for meals and lodging other than amounts which are lavish or extravagant under the circumstances)". (c) EFFECTIVE DATE.—The amendments made by this section shall apply with respect to taxable years ending after December 31, 1962, but only in respect of periods after such date. SEC. 5. AMOUNT OF DISTRIBUTION WHERE CERTAIN FOREIGN CORPORATIONS DISTRIBUTE PROPERTY IN KIND. (a) AMOUNT DISTRIBUTED.—Section 301(b)(1) (relating to amount 26 USC 3oi; distributed to corporate distributees) is amended by adding at the ^°'^'' P* ^°^^* end thereof the following new subparagraph: "(C)

CERTAIN CORPORATE DISTRIBUTEES OF FOREIGN CORPO-

RATION.—Notwithstanding subparagraph (B), if the shareholder is a corporation and the distributing corporation is a foreign corporation, the amount taken into account with respect to property (other than money) shall be the fair market value of such property; except that if any deduction is allowable under section 245 with respect to such distribu- 26 USC 245. tion, then the amount taken into account shall be the sum (determined under regulations prescribed by the Secretary or his delegate) of— " (i) the proportion of the adjusted basis of such property (or, if lower, its fair market value) properly attributable to gross income from sources within the Ignited States, and "(ii) the proportion of the fair market A'alue of such property properly attributable to gross income from sources without the United States." (b) BASIS.—Section 301(d) (relating to basis of property) is 26 USC 301; amended by adding at the end thereof the following new paragraph: ^°^^' P- '°^^"(3)

CERTAIN CORPORATE DISTRIBUTEES OF FOREIGN CORPORA-

TION.—In the case of property described in subparagraph (C) of subsection (b)(1), the basis shall be determined by substituting the amount determined under such subparagraph (C) for the amount described in paragraph (2) of this subsection." (c)

DIVIDENDS RECEIVED FROM CERTAIN FOREIGN CORPORATIONS.—

(1) Section 245 (relating to dividends received from certain foreign corporations) is amended by adding at the end thereof the following new subsection: "(b) PROPERTY DISTRIBUTIONS.—For purposes of subsection (a), the amount of any distribution of property other than money shall be the amount determined by applying section 301 (b(1)(B). " (2) Section 245 is amended by striking out "In the case of" and inserting in lieu thereof " (a) GENERAL RULE.—In the case of". (d) EFFECTIVE DATE.—The amendments made by this section shall apply to distributions made after December 31, 1962. SEC. 6. MUTUAL SAVINGS BANKS, ETC. (a) RESERVES FOR LOSSES ON LOANS.—Section 593 is amended to read as follows: "SEC. 593. RESERVES FOR LOSSES ON LOANS. " (a) ORGANIZATIONS TO W H I C H SECITON APPLIES.—This section shall apply to any mutual savings bank not having capital stock represented by shares, domestic building and loan association, or cooperative bank without capital stock organized and operated for mutual purposes and without profit. 78135 0-63—65

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