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PUBLIC LAW 89.570-SEPT. 12, 1966 "(3)

68A Stat. 213; 78 Stat. 97.

616^ "^^ ^ " '

SPECIAL RULES RELATING TO PARTNERSHIP PROPERTY.— "(1) PROPERTY DISTRIBUTED TO PARTNER.—In the case of

any property or mine received by the taxpayer in a distribution with respect to part or all of his interest in a partnership, the adjusted exploration expenditures with respect to such property or mine include the adjusted exploration expenditures (not otherwise included under subsection (f)(1)) with respect to such property or mine immediately prior to such distribution, but the adjusted exploration expenditures with respect to any such property or mine shall be reduced by the amount of gain to which section 751 (b) applied realized by the partnership (as constituted after the distribution) on the distribution of such property or mine. "(2) PROPERTY RETAINED BY PARTNERSHIP.—In the case of any property or mine held by a partnership after a distribution to a partner to which section 751(b) applied, the adjusted exploration expenditures with respect to such property or mine shall, under regulations prescribed by the Secretary or his delegate, be reduced by the amount of gain to which section 751(b) applied realized by such partner with respect to such distribution on account of such property or mine. "(h)

76 Stat. 1034. 76 Stat. 1035.

DISPOSAL OF COAL OR DOMESTIC IRON ORE W I T H A RETAINED

ECONOMIC INTEREST.—A transaction which constitutes a disposal of coal or iron ore under section 631(c) shall be treated as a disposition. In such a case, the excess referred to in subsection (d)(1)(B) shall be treated as equal to the gain (if any) referred to in section 631(c). (g)

68A Stat. 250.

[80 STAT.

CROSS REFERENCE.—

"For additional rules applicable for purposes of this section, see subsections (f) and (g) of section 615." (b) The following provisions of the Internal Revenue Code of 1954 are each amended by striking out "section 1245(a)" and inserting in lieu thereof "section 617(d)(1), 1245 (a), ": (^i^ Section 170(e) (relating to charitable contributions). (£) Subsectious (b)(1)(B) (ii) and (d)(2)(B) of section 301 (relating to amount distributed). (3) Paragraph (3) of section 312(c) (relating to adjustments of earnings and profits). (4) Paragraph (12) of section 341(e) (relating to collapsible corporations). (5) Subparagraphs (A) and (B) of section 453(d)(4) (relating to distribution of installment obligations in certain corporate liquidations). (c) The last sentence of section 751(c) of such Code (relating to definition of "unrealized receivables" for purposes of subchapter K) is amended— (1) by striking out "section 1245 property (as defined in section 1245(a)(3)) " and inserting in lieu thereof "mining property (as defined in section 6 1 7 (f)(2)), section 1245 property (as defined in section 1245(a)(3)),", and (2) by striking out "section 1245(a)" and inserting in lieu thereof "section 617(d)(1), 1245(a),". (d) The table of sections for part I of subchapter I of chapter 1 of s^^^ Code is amended by adding after the item relating to section 616 the following new item: "SEC. 617. Additional exploration expenditures in the case of domestic mining."

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