Page:United States Statutes at Large Volume 78.djvu/90

 48

PUBLIC LAW 88-272-FEB. 26, 1964

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26 USC m '

[78 STAT.

I)ropriation loss shall not be a net operating loss carryback to any taxable year preceding the taxable year of such loss and shall be a net operating loss carryover to each of the 10 taxable years following the taxable year of such loss."; (4) by adding at the end of subsection (b)(3) the following new subparagraphs: " (C) Paragraph (1)(D) shall apply only if— " (i) the foreign expropriation loss (as defined in subsection (k)) for the taxable year equals or exceeds 50 percent of the net operating loss for the taxable year, "(ii) in the case of a foreign expropriation loss for a taxable year ending after December 31, 1963, the taxpayer elects (at such time and in such manner as the Secretary or his delegate by regulations prescribes) to have paragraph (1)(D) apply, and "(iii) in the case of a foreign expropriation loss for a taxable year ending after December 31, 1958, and before January 1, 1964, the taxpayer elects (in such manner as the Secretary or his delegate by regulations prescribes) on or before December 31, 1965, to have paragraph (1)(D) apply. " (D) If a taxpayer makes an election under subparagraph (C) ( i i i), then (notwithstanding any law or rule of law), with respect to any taxable year ending before January 1, 196-1-, affected by the election— " (i) the time for making or changing any choice or election under subpart A of part III of subchapter X (relating to foreign tax credit) shall not expire before January 1, 1966, "(ii) any deficiency attributable to the election under subparagraph (C) (iii) or to the application of clause (i) of this subparagraph m&.j be assessed at any time before January 1, 1969, and "(iii) refund or credit of any overpayment attributable to the election under subparagraph (C) (iii) or to the application of clause (i) of this subparagraph may be made or allowed if claim therefor is filed before January 1, 1969."; ^'*^ ^y redesignating subsection (k) as (1), and by inserting after subsection (j) the following new subsection: '• (k) FoRETGx ExpKOPRiATiox Loss DEFINED.—For purposes of substH-iion (b) —

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"(1) The term 'foreign expropriation loss' means, for any taxable year, the sum of the losses sustained by reason of the expropriation, intervention, seizure, or similar taking of property by the government of any foreign country, any political subdivision thereof, or any agency or instrumentality of the foregoing. For purposes of the preceding sentence, a debt which becomes worthless shall, to the extent of any deduction allowed under section 166 (a), be treated as a loss. "(2) The portion of the net operating loss for any taxable year attributable to a foreign expropriation loss is the amount of the foreign expropriation loss for such year (but not in excess of the net operating loss for such year)." ^*^^ TECHNICAL AMENDMENTS.—Section 172(b)(2) is amended— (1) by striking out subparagraph (B) and inserting in lieu thereof the following: " (B) by determining the amount of the net operating loss deduction—

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