Page:United States Statutes at Large Volume 80 Part 1.djvu/1585

 80 STAT.]

PUBLIC LAW 89-809-NOV. 13, 1966

1549

consent of the Secretary or his delegate with respect to any taxable year. "(2) ELECTION AFTER REVOCATION.—If an election has been made under paragraph (1) and such election has been revoked, a new election may not be made under such paragraph for any taxable year before the 5th taxable year which begins after the first taxable year for which such revocation is effective, unless the Secretary or his delegate consents to such new election. " (3) FORM AND TIME or ELECTION AND REVOCATION.—An election

under paragraph (1), and any revocation of such an election, may be made only in such manner and at such time as the Secretary or his delegate may by regulations prescribe. "(e)

GAINS FROM SALE OR EXCHANGE OF CERTAIN INTANGIBLE PROP-

ERTY.—For purposes of subsection (a)(1)(D), and for purposes of 68A Stat. 357; sections881(a)(4), 1441(b),and 1442(a)— Post, pp. 1555, "(1) PAYMENTS TREATED AS CONTINGENT ON USE, ETC.—If more 15^57 than 50 percent of the gain for any taxable year from the sale or exchange of any patent, copyright, secret process or formula, good will, trademark, trade brand, franchise, or other like property, or of any interest in any such property, is from payments which are contingent on the productivity, use, or disposition of such property or interest, all of the gain for the taxable year from the sale or exchange of such property or interest shall be treated as being from payments which are contingent on the productivity, use, or disposition of such property or interest. "(2) SOURCE RULE.—In determining whether gains described in subsection (a)(1)(D) and section 881(a)(4) are received from sources within the United States, such gains shall be treated as rentals or royalties for the use of, or privilege of using, property or an interest in property. "(f)

CERTAIN ANNUITIES RECEIVED UNDER QUALIFIED PLANS.—For

purposes of this section, gross income does not include any amount received as an annuity under a qualified annuity plan described in section 403(a)(1), or from a qualified trust described in section 401(a) which is exempt from tax under section 501(a), if— "(1) all of the personal services by reason of which such annuity is payable were either (A) personal services performed outside the United States by an individual who, at the time of performance of such personal services, was a nonresident alien, or (B) personal services described in section 864(b)(1) performed within the United States by such individual, and " (2) at the time the first amount is paid as such annuity under such annuity plan, or by such trust, 90 percent or more of the employees for whom contributions or benefits are provided under such annuity plan, or under the plan or plans of which such trust is a part, are citizens or residents of the United States." "(g)

CROSS REFERENCES.—

"(1) For tax treatment of certain amounts distributed by the United States to nonresident alien individuals, see section 402(a)(4). "(2) For taxation of nonresident alien individuals who are expatriate United States citizens, see section 877. "(3) For doubling of tax on citizens of certain foreign countries, see section 891. "(4) For adjustment of tax in case of nationals or residents of certain foreign countries, see section 896. "(5) For withholding of tax at source on nonresident alien individuals, see section 1441. "(6) For the requirement of making a declaration of estimated tax by certain nonresident alien individuals, see section 6015(i)." 65-300 0-67—100

72 Stat. 1622.

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