Page:United States Statutes at Large Volume 83.djvu/613

 83 STAT. ]

PUBLIC LAW 9 M 7 2 - D E C. 30, 1969

585

"(2) CAPITAL GAINS AND STOCK OPTIONS.—For purposes of section 56, the items of tax preference set forth in paragraphs (6) and (9) of section 57(a) which are attributable to sources within any foreign country or possession of the United States shall not be taken into account if, under the tax laws of such country or possession— " (A) in the case of the item set forth in paragraph (6) of section 57(a), preferential treatment is not accorded transfers of shares of stock pursuant to stock options described in such paragraph, and " (B) in the case of the item set forth in paragraph (9) of section 57(a), preferential treatment is not accorded gain from the sale or exchange of capital assets (or property treated as capital assets)." ^,»., n (b) TECHNICAL AND CONFORMING AMENDMENTS.—

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(1) The table of parts for subchapter A of chapter 1 is amended by adding at the end thereof the following new item: "Part VI. Minimum tax for tax preferences."

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(2) Section 5(a) (relating to cross references to other rates of tax on individuals, etc.) is amended by adding at the end thereof the following new paragraph: "(5) For minimum tax for tax preferences, see section 56." (3) Section 12 (relating to cross references relating to tax on corporations) is amended by adding at the end thereof the following new paragraph: "(8) For minimum tax for tax preferences, see section 56." (4) Section 46(a)(3) (relating to lia;bility for tax for determining amount of investment credit) is amended by inserting "section 56 (relating to minimum tax for tax preferences)," before "section 531". (5) Section 51(b)(1) (relating to adjusted tax for purposes of tax surcharge) is amended by inserting "section 56," after "this section,". (6) Section 443 (relating to returns for a period of less than 12 months) is amended by redesignating subsection (d) as subsection (e) and inserting after subsection (c) the following new subsection:

82 Stat. 252. je'uscT 443"*^

"(d) ADJUSTMENT I N EXCLUSION FOR COMPUTING MINIMUM TAX

F R TAX PREFERENCES.—If a return is made for a short period by reaO son of subsection (a), then the $30,000 amount specified in section 56 ^"'e, p. sso. (relating to minimum tax for tax preferences), modified as provided by section 58, shall be reduced to the amount which bears the same i^tio to such specified amount as the number of days in the short period bears to 365." (7) Section 453(c)(3) (relating to rule for change from accrual to installment basis) is amended by inserting ", other than by section 56," after "prior revenue laws)". (8) Section 511 (relating to tax on unrelated business income Ante, p. sae. of charitable, etc., organizations) is amended by adding after subsection (c) (as added by section 121(a)(3) of this Act) the following new subsection: ''(d) TAX PREFERENCES.—The tax imposed by section 56 shall apply to an organization subject to tax under this section with respect to Items of tax preference which enter into the computation of unrelated business taxable income." (9) The last sentence of section 901(a) (relating to allowance 26 USC 901. of credit for taxes of foreign countries and of possessions of the United States) is amended by inserting "against the tax imposed

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