Page:United States Statutes at Large Volume 78.djvu/127

 78 STAT. ]

PUBLIC LAW 88-272-FEB. 26, 1964

85

For purposes of the preceding sentence, the term 'rents' means compensation, however designated, for the use of, or ri^ht to use, property, and the interest on debts owed to the corporation, to the extent such debts represent the price for which real property held primarily for sale to customers in the ordinary course of its trade or business was sold or exchanged by the corporation; but does not include amounts constituting personal holding company income under subsection (a)(6), nor copyright royalties (as defined in subsection (a)(4)), nor produced film rents (as defined in subsection (a)(5)(B)). "(4)

ADJUSTED INCOME FROM MINERAL, OIL, AND GAS ROYAL-

TIES.—The term 'adjusted income from mineral, oil, and gas royalties' means the gross income from mineral, oil, and gas royalties (including production payments and overriding royalties), reduced by the amount subtracted under paragraph (2)(B) of this subsection in respect of such royalties.'' (e)

FOREIGN PERSONAL HOLDING COMPANY INCOME AND STOCK

OWNERSHIP.—Section 553 (relating to foreign personal holding company income) and section 554 (relating to stock ownership) are amended to read as follows: "SEC. 553. FOREIGN PERSONAL HOLDING COMPANY INCOME.

68A Stat. 195. 26 USC 553, 554.

" (a) FOREIGN PERSONAL HOLDING (^OMPANY INCOME.—For purposes

of this subtitle, the term 'foreign personal holding company income' means that portion of the gross income, determined for puii:)Oses of section 552, which consists of: " (1) DIVIDENDS, ETC.—Dividends, interest, royalties, and annuities. This paragraph shall not apply to a dividend distribution of divested stock (as defined in subsection (e) of section 1111) but only if the st(X'k with respect to which the distribution is made was owned by the distributee cm September 6, 1961, or was owned by the distributee for at least 2 years before the date on which the antitiiist order (as defined in subsection (d) of section 1111) was entered. " (2) STCK^K AND SECURITIES TRANSACTIONS.—Except in the case of regular dealers in stock or securities, gains from the sale or exchange of stock or securities. "(3) COMMODITIES TRANSACTIONS.—Gains from futures transactions in any commodity on or subject to the rules of a board of trade or commodity exchange. This paragraph shall not apply to gains by a producer, processor, merchant, or handler of the commodity which arise out of bona fide hedging transactions reasonably necessary to the conduct of its business in the manner in which such business is customarily and usually conducted by others. "(4) ESTATES AND TRUSTS.—Amounts includible in computing the taxable income of the corporation under part I of subchapter J (sec. 641 and following, relating to estates, trusts, and beneficiaries); and gains from the sale or other disposition of any interest in an estate or trust. "(5)

PERSONAL SERVICE CONTRACTS.—

" (A) Amounts received under a contract under which the corporation is to furnish personal services; if some person otiier than the corporation has the right to designate (by name or by description) the individual who is to perform the services, or if the individual who is to perform the services is designated (l)v name or by description) in the contract; and " (B) amounts received from the sale or other disposition of such a contract.

26 USC 552.

96 USC "^i

^^ ^^^ 641-683.

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