Page:United States Statutes at Large Volume 90 Part 2.djvu/265

 PUBLIC LAW 94-455—OCT. 4, 1976

90 STAT. 1733

provision referred to in paragraph (1) is amended by striking out Ante, p. 1731. "9 months " each place it appears and inserting in lieu thereof " 1 year". (3) TECHNICAL AMENDMENT.—Effective with respect to taxable years beginning after December 31, 1976, section 631(a) (relating 26 USC 631. to gain or loss in the case of timber) is amended by striking out "before the beginning of such year". (c) TRANSITIONAL RULE FOR CERTAIN INSTALLMENT OBLIGATIONS.—

26 USC 453

I n the case of amounts received from sales or other dispositions of note, capital assets pursuant to binding contracts, including sales or other dispositions the income from which is returned on the basis and in the m a n n e r prescribed in section 453(a)(1) of the I n t e r n a l Revenue Code of 1954, if the gain or loss was treated as long-term for the taxable year for which the amount was realized, such gain or loss shall be treated a s long-term for the taxable year for which the g a i n or loss is returned o r otherwise recognized. (d)

R E T E N T I O N OF 6 - M O N T H PERIOD FOR F U T U R E S TRANSACTIONS

IN COMMODITIES.—Section 1222 (relating to other terms relating to capital gains and losses) is amended by a d d i n g at the end thereof the following new sentence: " For purposes of this subtitle, in the case of futures transactions in any commodity subject to the rules of a board of trade or commodity exchange, the length of the holding period taken into account under this section or under any other section amended by section 1402 of the T a x Reform Act of 1976 shall be determined without regard to the amendments made by subsections (a) and (b) of such section 1402." SEC. 1403. ALLOWANCE OF 8-YEAR CAPITAL LOSS CARRYOVER IN CASE OF REGULATED INVESTMENT COMPANIES. (a) GENERAL RULE. — Paragraph (1) of section 1212(a) (relating to capital loss carrybacks and carryovers for corporations) is amended by striking out " and " at the end of subparagraph (A) and by striking out subparagraph (B) and inserting in lieu thereof the following: " (B) except as provided in subparagraph (C), a capital loss carryover to each of the 5 taxable years succeeding the loss year; and " (C) a capital loss carryover— " (i) in the case of a regulated investment company (as defined in section 851) to each of the 8 taxable years succeeding the loss year, and " (ii) to the extent such loss is attributable to a foreign expropriation capital loss, to each of the 10 taxable years exceeding the loss year." (b) EFFECTIVE D A T E. — The amendments made by this section shall a p p l y to loss years (within the meaning of section 1212(a)(1) of the I n t e r n a l Revenue Code of 1954) ending on or after January 1, 1970. SEC. 1404. SALE OF RESIDENCE BY ELDERLY. (a) IN GENERAL.—Section 121(b)(1) (relating to gain from sale or exchange of residence of individual who has attained age 65) is amended by striking out "$20,000" each place it appears therein and inserting in lieu thereof "$35,000". (b) EFFECTIVE D A T E. — The amendment made by subsection (a) shall a p p l y to taxable years beginning after December 31, 1976.

26 USC 1222.

26 USC 1212.

26 USC 1212 note.

26 USC 121.

26 USC 121 note.

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