Page:United States Statutes at Large Volume 89.djvu/111

 PUBLIC LAW 94-12—MAR. 29, 1975

89 STAT. 51

" (8) BUSINESSES UNDER COMMON CONTROL; MEMBERS o r THE SAME FAMILY. " (A) COMPONENT MEMBERS OF CONTROLLED GROUP TREATED AS

ONE TAXPAYER.—For purposes of this subsection, persons who are members of the same controlled group of corporations shall be treated as one taxpayer. "(B)

AGGREGATION OF BUSINESS ENTITIES UNDER COMMON

CONTROL.—If 50 percent or more of the beneficial interest in two or more corporations, trusts, or estates is owned by the same or related persons (taking into account only persons who own a t least 5 percent of such beneficial interest), the tentative quantity determined under the table in paragraph (3)(B) shall be allocated among all such entities in proportion to the respective production of domestic crude oil during the period in question by such entities. " (C) ALLOCATION AMONG MEMBERS OF THE SAME F A M I L Y. —

I n the case of individuals who are members of the same family, the tentative quantity determined under the table in paragraph (3)(B) shall be allocated among such individuals in proportion to the respective production of domestic crude oil during the period in question by such individuals. " (D) DEFINITION AND SPECIAL RULES.—For purposes of t h i s

paragraph— " (i) the term 'controlled group of corporations' has the meaning given to such term by section 1563(a), except 26 USC 1563. that section 1563(b)(2) shall not apply and except that 'more than 50 percent' shall be substituted for ' a t least 80 percent' each place it appears in section 1563(a), " ( i i) a person is a related person to another person if such persons a r e members of the same controlled g r o u p of corporations or if the relationship between such persons would result in a disallowance of losses under section 267 or 7 0 7 (b), except that for this purpose the family of 26 USC 267, an individual includes only his spouse and minor chil- ^O^dren, " ( i i i) the family of an individual includes only h i s spouse and minor children, and " (iv) each 6,000 cubic feet of domestic n a t u r a l gas shall be treated as 1 barrel of domestic crude oil. " (9) TRANSFER OF OIL OR GAS PROPERTY.—

" (A) I n the case of a transfer (including the subleasing of a lease) after December 31, 1974 of a n interest (including an interest in a partnership or trust) in any proven oil or g a s property, paragraph (1) shall not apply to the transferee (or sublessee) with respect to production of crude oil or natural gas attributable to such interest, and such production shall not be taken into account for any computation by the transferee (or sublessee) under this subsection. A property shall be treated as a proven oil or gas property if a t the time of the transfer the principal value of the property has been demonstrated by prospecting or exploration or discovery work. " (B) Subparagraph (A) shall not apply in the case of— " (i) a transfer of property a t death, or " ( i i) the transfer i n a n exchange to which section 351 26 USC 351. applies if following the exchange the tentative quantity

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