Page:United States Statutes at Large Volume 83.djvu/615

 83 STAT.

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PUBLIC LAW 91-172-DEC. 30, 1969

587

"(2) BASE PERIOD INCOME.—The base period income for anv taxable year is the taxable income for such year— " (A) increased by an amount equal to the excess of— " (i) the amount excluded from gross income under section 911 (relating to earned income from sources without the United States) and subpart D of part III of subchapter N (sec. 931 and following, relating to income from sources within possessions of the United States), over "(ii) the deductions which would have been properly allocable to or chargeable against such amount but for the exclusion of such amount from gross income; and " (B) decreased by the amounts included in the income of P o s t, p. 594. a beneficiary of a trust under section 668(a). "(c) OTHER RELATED DEFINITIONS.—For purposes of this part— "(1) COMPUTATION YEAR.—The term 'computation year' means the taxable year for which the taxpayer chooses the benefits of this part. "(2) BASE PERIOD.—The term 'base period'means the 4 taxable years immediately preceding the computation year. " (3) BASE PERIOD YEAR.—The term 'base period year' means any of the 4 taxable years immediately preceding the computation year. "(4) JOINT RETURN.—The term 'joint return' means the return of a husband and wife made under section 6013." ^os'. PP- ^75, (c) SPECIAL, RULES.—Section 1304(b) (relating to special rules ^^yg Stat. los. applicable to income averaging) is amended— (1) by striking out "and" at the end of paragraph (3); (2) by striking out the period at the end of paragraph (4) and inserting in lieu thereof a comma; and (3) by adding at the end thereof the following new paragraphs; " (5) section 1201(b) (relating to alternative capital gains tax), P o s t, p. 635. and "(6) section 1348 (relating to 50-percent maximum rate on Post, p. ess. earned income)." (d) CONFORMING AMENDMENTS.—

(1) Section 1303(c)(2)(B) is amended by striking out "adjusted". (2) Section 1304 is amended— (A) by striking out paragraph (3) of subsection (c) and by redesignating paragraphs (4) and (5) of such subsections as paragraphs (3) and (4), respectively; (B) by striking out "Paragraphs (2), (3), and (4) " in subsection (c)(1) and inserting in lieu thereof "Paragraphs (2) and (3) "; (C) by striking out "paragraph (4) " in subsection (c)(1) (B) and inserting in lieu thereof "paragraph (3) "; (D) by striking out "adjusted" in subparagraph (B) of subsection (c)(3) (as redesignated); (E) by striking out in subsection (d) ", and the $3,000 figure contained in section 1302(b)(2)(C) shall be applied to the aggregate net incomes"; (F) by striking out subsections (e) and (f) and inserting in lieu thereof the following: '(e)

TREATMENT OF CERTAIN OTHER ITEMS.—

78 Stat. 107.

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