Page:United States Statutes at Large Volume 83.djvu/599

 83 STAT. ]

PUBLIC LAW 91-172-DEC. 30, 1969

571

SEC. 212. LIVESTOCK. (a) DEPRECIATIOX RECAPTURE.— (1) GENERAL RULE.—Section 1245(a)(2)

(relating to recomputed basis with respect to gain from disposition of certain depreciable property) is amended by striking out "or" at the end of subparagraph (A), and by inserting immediately after subparagraph (B) the following: " (C) with respect to livestock, its adjusted basis recomputed by adding thereto all adjustments attributable to periods after December 31, 1969, or". (2) CONFORMING AMENDMENT.—Section 1245(a)(3) (relating to section 1245 property) is amended by striking out " (other than livestock)". (3) EFFECTIVE DATE.—The amendments made by paragraphs (1) and (2) shall apply with respect to taxable years begmning after December 31, 1969.

(b) LIVESTOCK U S E D I N TRADE OR B U S I N E S S. — (1) AMENDMENT OF SECTION 1231.—Section 1231(b)(3) (relat-

76 Stat. 1032. Je'usc'u^s

68A Stat. 325.

ing to property used in a trade or business) is amended to read as follows: " (3) LIVESTOCK.—Such term includes— " (A) cattle and horses, regardless of age, held by the taxpayer for draft, breeding, dairy, or sporting purposes, and held by him for 24 months or more from the date of acquisition, and " (B) other livestock, regardless of age, held by the taxpayer for draft, breeding, dairy, or sporting purposes, and held by him for 12 months or more from the date of acquisiti(m. Such term does not include poultry." (2) EFFPX'TIVE DATE.-—llie amendments made by paragraph (1) shall apply to livestock acquired after December 31, 1969. (c) EXCHANGES OF LIVESTOCK OF DIFFERENT SEXES.— (1) NOT TO BE TREATED AS LIKE KIND EXCHANGES.—Section 1031

26^sc?*io3°i^"

(relating to exchange of property held for productive use or for investment) is amended by adding at the end thereof the following new subsection: "(e) EXCHANGES OF LIVESTOCK OF DIFFERENT SEXES.—For purposes of this section, livestock of different sexes are not property of a like kind." (2) EFFECTIVE DATE.—The amendment made by paragraph (1) shall apply to taxable years to which the Internal Revenue Code of 1954 applies. SEC. 213. DEDUCTIONS ATTRIBUTABLE TO ACTIVITIES NOT ENGAGED IN FOR PROFIT. 26 . (a) GENERAL RULE. — Part VI of subchapter B of chapter 1 (relat- 182. u s e 161ing to itemized deductions for individuals and corporations) is amended by adding at the end thereof the following new section: "SEC. 183. ACTIVITIES NOT ENGAGED IN FOR PROFIT. . "(a) GENERAL RULE. — I n the case of an activity engaged in by an individual or an electing small business corporation (as defined in section 1371(b)), if such activity is not engaged in for profit, no deduction attributable to such activity shall be allowed under this chapter ^^fPt as provided in this section. (b) DEDUCTIONS ALLOWABLE.—In the case of an activity not engaged in for profit to which subsection (a) applies, there shall be allowed—

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