Page:United States Statutes at Large Volume 90 Part 2.djvu/263

 PUBLIC LAW 94-455—OCT. 4, 1976

90 STAT. 1731

TITLE XIV—TREATMENT OF CERTAIN CAPITAL LOSSES; HOLDING PERIOD FOR CAPITAL GAINS AND LOSSES

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SEC. 1401. INCREASE IN AMOUNT OF ORDINARY INCOME AGAINST WHICH CAPITAL LOSS MAY BE OFFSET. (a) GENERAL RULE. — Subparagraph (B) of section 1211(b)(1) 26 USC 1211. (relating to limitation on capital losses for taxpayers other than corporations) is amended by striking out "$1,000" and inserting in lieu . „,.thereof "the applicable amount". (b)

APPLICABLE

AMOUNT

DEFINED.—Paragraph

(2)

of

section

,

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1211(b) (relating to limitation on capital losses for taxpayers other than corporations) is amended to read as follows: " (2) APPLICABLE AMOUNT.—For purposes of paragraph (1)(B), the term 'applicable amount' means— " (A) $2,000 in the case of any taxable year beginning in -...-• 1977; and " (]3) $3,000 in the case of any taxable year beginning after 1977. I n the case of a separate return by a husband or wife, the applicable amount shall be one-half of the amount determined under the preceding sentence." »£ (c) EFFECTIVE D A T E. — The amendments made by this section shall 26 USC 1211 apply to taxable years beginning after December 31, 1976. note. SEC. 1402. INCREASE IN HOLDING PERIOD REQUIRED FOR CAPITAL GAIN OR LOSS TO BE LONG TERM. (a) INCREASE I N T w o S T E P S F R O M 6 M O N T H S TO 1 Y E A R. —

.i.

(1) TAXABLE YEARS BEGINNING I N 1977.—Effective with respect

to taxable years beginning in 1977, paragraph s (1), (2), (3), and (4) of section 1222 (relating to other terms relating to capital 26 USC 1222. gains and losses) a r e each amended by striking out "6 months " and inserting in lieu thereof "9 months. (2)

TAXABLE YEARS BEGINNING AFTER

1977.—Effective w i t h

respect to taxable years beginning after December 31, 1977, paragraph s (1), (2), (3), and (4) of section 1222 are each amended by striking out "9 months " and inserting in lieu thereof "1 year".



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(b) CONFORMING AMENDMENTS. —

(1) TAXABLE YEARS BEGINNING I N 1977.—Effective with respect

to taxable years beginning in 1977, the following provisions are each amended by striking out "6 months " each place it appears and inserting in lieu thereof "9 months ": (A) Paragraph (1)(B) of section 166(d) (relating to nonbusiness debts). (B) Subsection (a) of section 341 (relating to treatment of gain to shareholders in the case of collapsible corporations). (C) Paragraph (2) of subsection (a) of section 402 (relating to capital gains treatment for certain distributions in the case of a beneficiary of an exempt employees' trust) and subparagraph (L) of paragraph (4) of section 402(e) (relating to election to t r e a t pre-1974 participation as post-1973 participation). (D) Subparagraph (A) of section 403(a)(2) (relating to capital gains treatment for certain distributions in the case of a beneficiary under a qualified a n n u i t y p l a n).

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26 USC 166. 26 USC 341. •' 26 USC 402. , 26 USC 403.

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