Page:United States Statutes at Large Volume 83.djvu/577

 83 STAT.

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PUBLIC LAW 91-172-DEC. 30, 1969

(or) EFFECTIVE DATES.—The amendments made by this section Mother than by subsections (b)(3) and (e)) shall apply to taxable years Lffinning after December 31, 1969. The amendments made by subsection (b)(3) ^^^^^ apply *o taxable years beginning after December 31, 1970 The amendments made by subsection (e) shall apply with respect to transfers of property after December 31, 1969. Where an organization makes a bargain purchase of property before October 9, 1969, which is subject to a mortgage which was placed on the property more than 5 y^^ before the purchase, and the organization paid the seller total amount no greater than the amount of the seller's cost (including attorneys' fees) directly related to the transfer of such property to the organization (but in any event no more than 10 percent of the value of the seller's equity in the property), the indebtedness secured by such mortgage shall not be treated, notwithstanding the amendments made by subsection (d)(1), as acquisition indebtedness for purposes of section 514(c)(1) of the Internal Revenue Code of 1954 during a period of 10 years following the date of the transaction.

549

Ante, p. 545.

TITLE II—INDIVIDUAL DEDUCTIONS Subtitle A—Charitable Contributions SEC. 201. CHARITABLE CONTRIBUTIONS. (a) LIMITATIONS AND S P E C I A L RULES. —

(1) IN GENERAL.—Section 170 (relating to charitable, etc., contributions and gifts) is amended— (A) by redesignating subsections (h) and (i) as (i) and (j), respectively, and by redesignating subsection (d) as (h), and (B) by striking out subsections (a), (b), (c), (e), and (f) and inserting in lieu thereof the following: "(a) ALLOWANCE OF DEDUCTION.— "(1) GENERAL RULE.—There shall

be allowed as a deduction any charitable contribution (as defined in subsection (c)) payment of which is made within the taxable year. A charitable contribution shall be allowable as a deduction only if verified under regulations prescribed by the Secretary or his delegate. "(2) CORPORATIONS ON ACCRUAL BASIS.—In the case of a corporation reporting its taxable income on the accrual basis, if— " (A) the board of directors authorizes a charitable contribution during any taxable year, and " (B) payment of such contribution is made after the close of such taxable year and on or before the 15th day of the third month following the close of such taxable year, then the taxpayer may elect to treat such contribution as paid during such taxable year. The election may be made only at the time of the filing of the return for such taxable year, and shall be signified in such manner as the Secretary or his delegate shall by^^regulations prescribe. "(3)

FUTURE INTERESTS I N TANGIBLE PERSONAL PROPERTY.—

For purposes of this section, payment of a charitable contribution which consists of a future interest in tangible personal property shall be treated as made only when all intervening interests in, and rights to the actual possession or enjoyment of, the property have expired or are held by persons other than the taxpayer or those standing in a relationship to the taxpayer described in section

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^f'^^l^^^^^^^ 26 USC 170. "" "''^ '^"

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