Page:United States Statutes at Large Volume 76.djvu/55

 76 STAT. ]

PUBLIC LAW 87-403-FEB. 2, 1962

" ( 3 ^ such distribution was includible in personal holding company income under subsection (a)(1), then proper adjustment shall be made, under regulations prescribed by the Secretary or his delegate, to amounts includible in personal holding company income under subsection (a)(2) with respect to such stock (or other property the basis of which is determined by reference to the basis of such stock)." (d) Subsection (b) of section 545 of the Internal Revenue Code of 1954 (relating to undistributed personal holding company income) is 26 USC S45. amended by adding at the end thereof the following new paragraphs: " (10) DISTRIBUTIONS or DIVESTED STOCK.—There shall be allowed as a deduction the amount of any income attributable to the receipt of a distribution of divested stock (as defined in subsection (e) of section 1111), minus the taxes imposed by this subtitle Ante, p. 4. attributable to such receipt, but only if the stock with respect to which the distribution is made was owned by the distributee on September 6, 1961, or was owned by the distributee for at least 2 years prior to the date on which the antitrust order (as defined in subsection (d) of section 1111) was entered. Ante, p. 4. "(11) SPECIAL, ADJUSTMENT ON DISPOSITION or ANTITRUST STOCK RECEIVED A S A DIVIDEND. I f

" (A) a corporation received antitrust stock (as defined in section 301(f)) in a distribution to which section 301 applied, " (B) the amount of the distribution determined under section 301(f)(2) exceeded the basis of the stock determined under section 301(f)(3), and " (C) Paragraph (10) did not apply in respect of 'such distribution, then proper adjustment shall be made, under regulations prescribed by the Secretary or his delegate, if such stock (or other property the basis of which is determined by reference to the basis of such stock) is sold or exchanged." (e) Subsection (b) of section 556 of the Internal Revenue Code of 1954 (relating to undistributed foreign personal holding company income) is amended by adding at the end thereof the following new paragraphs: " (7) DISTRIBUTIONS or DIVESTED STOCK.—There shall be allowed as a deduction the amount of any income attributable to the receipt of a distribution of divested stock (as defined in subsection (e) of section 1111), minus the taxes imposed by this subtitle attributable to such receipt, -but only if the stock with respect to which the distribution is made was owned by the distributee on September 6, 1961, or was owned by the distributee for at least 2 years prior to the date on which the antitrust order (as defined in subsection (d) of section 1111) was entered. "(8) SPECIAL ADJUSTMENT ON DISPOSITION OF ANTITRUST STOCK RECEIVED AS A DIVIDEND.—IF

" (A) a corporation received antitrust stock (as defined in section 301(f)) in a distribution to which section 301 applied, " (B) the amount of the distribution determined under section 301(f)(2) exceeded the basis of the stock determined under section 301(f)(3), and " (C) paragraph (7) did not apply in respect of such distribution, then proper adjustment shall be made, under regulations prescribed by the Secretary or his delegate, if such stock (or other Eroperty the basis of which is determined by reference to the asis of such stock) is sold or exchanged."

Ante, p. s. 26 USC 301.

26 USC sse.

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