Page:United States Statutes at Large Volume 83.djvu/665

 83 STAT. ]

PUBLIC LAW 91-172-DEC. 30, 1969

637

"(3) in the case of a taxpayer other than a corporation, from any other source, but the amount taken into account from such other sources for the purposes of this paragiuph shall be limited to an amount equal to the excess (if any) of $50,000 ($25,000 in the case of a married individual filing a separate return) over the sum of the gains to which paragraphs (1) aoid (2) apply. «(e) CROSS REFERENCES.—

"For computation of the alternative tax— "(1) in the case of life insurance companies, see section 802(a)(2); "(2) in''the case of regulated investment companies and their shareholders, see section 852(b)(3)(A) and (D); and "(3) in the case of real estate investment trusts, see section 857(b) (3)(A)." (c)

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CONFORMING AMENDMENTS. —

(1) Section 802(a)(2)(B) (relating to alternative tax in case H use gVa""' of capital gains of life insurance companies) is amended to read as follows: " (B) an amount determined as provided in section 1201 (a) on such excess." ^"'^' p- ^^s. (2) Section 852(b)(3) (relating to method of taxation of reg- 68A Stat. 271. ulated investment companies and their shareholders in the case of capital gains) is amended: (A) by striking out "of 25 percent of" in subparagraph (A) and inserting in lieu thereof ", determined as provided in section 1201(a), on", (B) by adding at the end of subparagraph (C) the following new sentence: "For purposes of subparagraph (A) (ii), the deduction for dividends paid shall, in the case of a taxable year beginning before January 1, 1975, first be made from the amount subject to tax in accordance with section 1201(a)(1)(B), to the extent thereof, and then from the amount subject to tax in accordance with section 1201(a) (1)(A).", (C) by striking out "of 25 percent" in subparagraph (D) 70 Stat. 530. (ii),and (D) by amending subparagraph (D) (iii) to read as follows: "(iii) The adjusted basis of such shares in the hands of the shareholder shall be increased, with respect to the amounts required by this subparagraph to be included in computing his long-term capital gains, by 75 percent of so nuich of such amounts as equals the amount subject to tax in accordance with section 1201(a)(1)(A) and by 70 percent (72 percent in the case of a taxable year beginning after December 31, 1969, and before January 1, 1971) of so much of such amounts as equals the amount subject to tax in accordance with section 1201(a)(1)(B) or (2)." (3) Section 857(b)(3) (relating to imposition of tax in the 74 Stat. 1006. case of capital gains of real estate investment trusts) is amended: (A) by striking out "of 25 percent of" in subparagraph (A) and inserting in lieu thereof ", determined as provided in section 1201(a), on", and (B) by adding at the end of subparagraph (C) the following new sentence: "For purposes of subparagraph (A) (ii), in the case of a taxable year beginning before January 1, 1975, the deduction for dividends paid shall first be made

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