Page:United States Statutes at Large Volume 78.djvu/91

 78 STAT. ]

PUBLIC LAW 88-272-FEB. 26, 1964

49

" (i) without regard to the net operating loss for the loss ^ear or for any taxable year thereafter, and "(li) without regard to that portion, if any, of a net operating loss for a taxable year attributable to a foreign expropriation loss, if such portion may not, under paragraph (1)(D), be carried back to such prior taxable year,"; and (2) by adding at the end thereof the following new sentence: "For purposes of this paragraph, if a portion of the net operating loss for the loss year is attributable to a foreign expropriation loss to which paragraph (1)(D) applies, such portion shall be considered to be a separate net operating loss for such year to be applied after the other portion of such net operating loss." (c) ErPECTn^ DATE.—The amendments made by this section shall apply in respect of foreign expropriation losses (as defined in section 172 (k) of the Internal Revenue Code of 1954, as amended by subsection (a)(5) of this section), sustained in taxable years ending after December 31, 1958. SEC. 211. ONE-PERCENT LIMITATION ON MEDICINE AND DRUGS. (a) GENERAL RULE.—Subsection (b) of section 213 (relating to medical, dental, etc., expenses) is amended by adding at the end thereof the following new sentence: "The preceding sentence shall not apply to amounts paid for the care of— " (1) the taxpayer and his spouse, if either of them has attained the age of 65 before the close of the taxable year, or "(2) any dependent described in subsection (a)(1)(A). " (b) EFFECTIVE DATE.—The amendment made by subsection (a) shall apply to taxable years beginning after December 31, 1963. SEC. 212. CARE OF DEPENDENTS. (a) CHILD CARE ALLOWANCE.—Section 214 (relating to expenses

for care of certain dependents) is amended to read as follows:

"SEC. 214. EXPENSES FOR CARE OF CERTAIN DEPENDENTS. " (a) GENERAL RULE.—There shall be allowed as a deduction expenses paid during the taxable year by a taxpayer who is a woman or widower, or is a husband whose wife is incapacitated or is institutionalized, for the care of one or more dependents (as defined in subsection (d)(1)), but only if such care is lor the purpose of enabling t he taxpayer to be gainfully employed. "(b)

LIMITATIONS.— "(1) DOLLAR LIMIT.—

" (A) Except as provided in subparagraph (B), the deduction under subsection (a) shall not exceed $600 for any taxable year. " (B) The $600 limit of subparagraph (A) shall be increased (to an amount not above $900) by the amount of expenses incurred by the taxpayer for any period during which the taxpayer had 2 or more dependents. "(2)

WORKING

WIVES AND HUSBANDS WITH

INCAPACITATED

WIVES,—In the case of a woman who is married and in the case of a husband whose wife is incapacitated, the deduction under subsection (a) — " (A) shall not be allowed unless the taxpayer and his spouse file a joint return for the taxable year, and " (B) shall be reduced by the amount (if any) by which the adjusted gross income of the taxpayer and his spouse exceeds $6,000. This paragraph shall not apply, in the case of a woman who is married, to expenses incurred while her husband is incapable of

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68A Stat. 69. 26 USC 213.

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