Page:United States Statutes at Large Volume 79.djvu/439

 79 STAT. ]

PUBLIC LAW 89-97-JULY 30, 1965

399

tinder clause (B) of subsection (f)(1) of this section as in effect prior to the Social Security Act Amendments of 1950, within the 64 Stat. 42 USC period prescribed by such subparagraph or clause, or note "(2) to file, in the case of a death after 1946, application for a lump-sum death payment under subsection (i), or under subsection (g) of this section as in effect prior to the Social Security 42 USC Act Amendments of 1950, within the period prescribed by such subsection, any such proof or application, as the case may be, which is filed after the expiration of such period shall be deemed to have been filed within such period if it is shown to the satisfaction of the Secretary that there was good cause for failure to file such proof or application within such period. The determination of what constitutes good cause for purposes of this subsection shall be made in accordance with regulations of the Secretary." (b) The amendments made by this section shall be effective with respect to (1) applications for lump-sum death payments filed in or after the month m which this Act is enacted, and (2) monthly benefits based on applications filed in or after such month.

477. 301

40 2.

TREATMENT OF CERTAIN ROYALTIES FOR RETIREMENT TE8T PURPOSES

SEC. 325. (a)(1) Subparagraph (B) of section 203(f)(5) of the Social Security Act is amended to read as follows: " (B) For purposes of this section— " (i) an individual's net earnings from self-employment for any taxable year shall be determined as provided in section 211, except that paragraphs (1), (4), and (5) of section 211(c) shall not apply and the gross income shall be computed by excluding the amounts provided by subparagraph (D),and "(ii) an individual's net loss from self-employment for any taxable year is the excess of the deductions (plus his distributive share of loss described in section 702(a)(9) of the Internal Revenue Code of 1954) taken into account under clause (i) over the gross income (plus his distributive share of income so descrited) taken into account under clause (i)." (2) Such section 203(f)(5) is further amended by adding at the end thereof the following new subparagraph: "(D) In the case of an individual— "(i) who has attained the age of 65 on or before the last day of the taxable year, and "(ii) who shows to the satisfaction of the Secretary that he is receiving royalties attributable to a copyright or patent obtained before the taxable year in which he attained the age of 65 and that the property to which the copyright or patent relates was created by his own personal efforts, there shall be excluded from gross mcome any such royalties." (b) The amendments made by subsection (a) shall apply with respect to the computation of net earnings from self-employment and the net loss from self-employment for taxable years beginning after 1964.

42 USC 40^3^."

42 USC 411.

68A Stat. 239. 26 USC 702.

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