Page:United States Statutes at Large Volume 78.djvu/82

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PUBLIC LAW 8 8 - 2 7 2 - F E B. 26, 1964

[78 STAT.

the a m o u n t of g a i n not included in <2:ro«s income piirsnant to a n election under t h i s section.'" (1)) T K C II N I C A L Axn CI^ERICAL A. M K X D M K X T S. —

26 us^c 60^^°*

^^^ Section H12(c) ( r e l a t i n g to persons r e q u i r e d to m a k e r e t u r n s of income) is amended to read a s f o l l o w s: "(c)

Ante, p. 38. 26 us^c 91°°^

CERTAIN I N C O M E E A R N E D ABROAD OR F R O M

SALE OF RESI-

D E N C E. — For purposes of this section, g r o s s income shall be c o m p u t e d withoiit r e g a r d to the exclusion provided for in section 121 ( r e l a t i n g (o sale of residence by i n d i v i d u a l w h o has a t t a i n e d a g e 65) and w i t h o u t r e g a r d to the exclusion provided for in section 911 ( r e l a t i n g to ea r n e d income from sources w i t h o u t the United States). " (2) The t a b l e of sections for part III of subchapter B of chapter 1 is amended by striking out "Sec. 121. Cross references to other Acts."

26 USC 1033.

26 USC 1034.

and inserting i n lieu thereof "Sec. 121. Gain from sale or exchange of residence of inrtiviilual who has attained age 65. "Sec. 122. Cross references to other Acts." ^3^ Section 1 0 3 3 (h) ( r e l a t i n g to i n voluntary conversions) i s amended by a d d i n g a t the e n d thereof the following n e w paragraph: "(3) For exclusion from gross income of certain gain from involuntary conversion of residence of taxpayer who has attained age 65, see section 121." (^^^ Section 1034 ( r e l a t i n g to sale o r e x c h a n g e of residence) is amended by a d d i n g a t the e n d thereof the following n e w subsection: "(k)

CROSS R E F E R E N C E. —

"For exclusion from gross income of certain gain from sale or exchange of residence of taxpayer who has attained age 65, see section 121."

Il\ilc\e4'

26 USC 212.

(c) EFFECTIVE D A T E. — The amendments m a d e by t h i s section shall after such date. SEC. 207. DENIAL OF DEDUCTION FOR CERTAIN STATE, LOCAL, ANI FOREIGN TAXES. i^) I^' GENERAL.—Subsections (a), (b), and (c) of section 164 (relating to deduction for taxes) are amended to reacl as follows: " (a) GENERAL RULE.—Except as otherwise provided in this section, the following taxes shall be allowed as a deduction for the taxable year within which paid or accrued: " (1) State and local, and foreign, real property taxes. "(2) State and local personal property taxes. "(3) State and local, and foreign, income, war profits, and excess profits taxes. "(4) State and local general sales taxes. "(5) State and local taxes on the sale of gasoline, diesel fuel, and other motor fuels. In addition, there shall be allowed as a deduction State and local, and foreign, taxes not described in the ]>receding sentence which are paid or accrued within the taxable year in carrying on a trade or business or an activity described in section 212 (relating to expenses for production of income). "(b)
 * ipply to dispositions after December 31, 1063, i n tax a b l e year s endin|»

DEFINITIONS AND SPECIAL RULES.—For purposes of

this

section— "(1) PERSONAL I»ROPEKTY TAXES.—The term 'personal property

tax" means an ad valorem tax which is imposed on an annual basis in respect of personal property.

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