Page:United States Statutes at Large Volume 76.djvu/696

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PUBLIC LAW 87-710-SEPT. 27, 1%2

[76 STAT.

shall receive as an ordinary creditor an amount equal to the value of his interest in the dissolved partnership with interest, or, at his option or at the option of his legal representative, in lieu of interest, the profits attributable to the use of his right in the property of the dissolved partnership; provided that the creditors, or the representative of the retired or deceased creditors of the dissolved partnership as against the separate partner, shall have priority on any claim arising under this section, as provided by section 41(8) of this Act. SEC. 43. ACCRUAL or E I G H T TO ACCOUNT.—The right to an account of his interest shall accrue to any partner, or his legal representative, as against the winding u p partners or the surviving partners or the person or partnership continuing the business, at the date of dissolution, in the absence of anj'^ agreement to the contrary. Approved September 27, 1962.

Public Law 87-710 September 27, 1962

[H. Ry 12526]

Taxes. Operating loss '^^^irrt'^'ieyg.

AN ACT

To amend section 172 of the Internal Revenue Code of 1954 to provide a sevenyear net operating loss carryover for certain regulated transportation corporations.

Be it enacted by the Seriate avid House of Representatives of the United States of America in Congress assembled, That (a) subsection (b) of SBction 172 of the Internal Revenue Code of 1954 (relating to net operating loss deduction) is amended to read as follows: " (b) N E T OPERATING LOSS CARRYBACKS AND CARRYOVERS.— " (1) YEARS TO WHICH LOSS MAY BE CARRIED.—A net operating

"Loss year."

loss for any taxable year— " (A) ending after December 31, 1957, shall be a net operating loss carryback to each of the 3 taxable years preceding the taxable year of the loss, and " (B) ending after December 31, 1955, shall (except as provided in subparagraph (C)) be a net operating loss carryover to each of the 5 taxable years following the taxable year of such loss, or "(C) ending after December 31, 1955, in the case of a taxpayer which is a regulated transportation corporation (as defined in subsection (j)(l)), shall (except as provided in subsection (j)) be a net operating loss carryover to each of the 7 taxable years following the taxable year of such loss. " (2) AMOUNT OF CARRYBACKS AND CARRYOVERS.—Except as provided in subsections (i) and (j), the entire amount of the net operating loss for any taxable year (hereinafter in this section referred to as the 'loss year') shall be carried to the earliest of the taxable years to which (by reason of paragraph (1)) such loss may be carried. The portion of such loss which shall be carried to each of the other taxable years shall be the excess, if any, of the amount of such loss over the sum of the taxable income for each of the prior taxable years to which such loss may be carried. For purposes of the preceding sentence, the taxable income for any such prior taxable years shall be computed— " (A) with the modifications specified in subsection (d) other than paragraphs (1), (4), and (6) thereof; and " (B) by determining the amount of the net operating loss deduction without regard to the net operating loss for the loss year or for any taxable year thereafter, and the taxable incoine so computed shall not be considered to be less than zero."

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