Page:United States Statutes at Large Volume 89.djvu/477

 PUBLIC LAW 94-81—AUG. 9, 1975

89 STAT. 417

Public Law 94-81 94th Congress An Act To exclude from gross income gains from the condemnation of certain forest lands held in trust for the Klamath Indian Tribe.

Aug. 9, 1975 [H.R. 83]

Be it enacted by the Seriate and House of Representatives of the United States of America in Congress assembled, That, for purposes of the I n t e r n a l Revenue Code of 1954, gain resulting from the condemnation, pursuant to Public Law 93-102, of the K l a m a t h Indian forest lands held by the trustee for the K l a m a t h Indian Tribe— (1) shall be excluded from the gross income of the trust, and (2) on the distribution from the trust of the proceeds of such condemnation, shall be excluded from the gross income of each person receiving such distribution. SEC. 2. TRANSFERS OF SECTION 1245 PROPERTY OR SECTION 1250 PROPERTY TO TAX-EXEMPT ORGANIZATION WHICH USES SUCH PROPERTY IN AN UNRELATED TRADE OR BUSINESS.

Indians. Klamath Tribe, gains from condemnation of certain forest lands. Tax exclusion. 25 USC 564j note. 25 USC 564W-2.

(a) AMENDMENTS o r SECTION 1245.—

(1) The second sentence of section 1 2 4 5 (b)(3) (relating to gain from dispositions of certain depreciable property) is amended by striking out " T h i s " and inserting i n lieu thereof " E x c e p t as provided in paragraph (7), this". (2) Section 1245(b) is amended by a d d i n g a t the end thereof the following new paragraph:

26 USC 1245.

" (7) TRANSFERS TO TAX-EXEMPT ORGANIZATION WHERE PROPERTY WILL BE USED I N UNRELATED BUSINESS.

" (A) IN GENERAL.—The second sentence of paragraph (3) shall not apply to a disposition of section 1245 property to an organization described in section 511(a)(2) or 511(b)(2) 26 USC 511. if, immediately after such disposition, such organization uses such property in a n unrelated trade or business (as defined in 26 USC 513. section 513). " (B) LATER CHANGE I N U S E. — I f any property w i t h respect

to the disposition of which gain is not recognized by reason of subparagraph (A) ceases to be used in an unrelated trade or business of the organization acquiring such property, such organization acquiring such property, such organization shall be treated for purposes of this section as having disposed of such property on the date of such cessation.". (b) AMENDMENTS TO SECTION 1250.—

(1) The second sentence of section 1250(d)(3) (relating to gain 26 USC 1250. from dispositions of certain depreciable realty) is amended by striking out " T h i s " and inserting in lieu thereof "Except as provided in paragraph (9), this". (2) Section 1250(d) is amended by a d d i n g at the end thereof the following new paragraph: " (9) TRANSFERS TO TAX-EXEMPT ORGANIZATION WHERE PROPERTY

WILL BE USED I N UNRELATED BUSINESS.— " (A) IN GENERAL.—The second sentence of paragraph (8) shall not apply to a disposition of section 1250 property to an organization described in section 511(a)(2) or 511(b)(2) if, immediately after such disposition, such organization uses

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