Page:United States Statutes at Large Volume 90 Part 2.djvu/315

 PUBLIC LAW 94-455—OCT. 4, 1976 (109)

90 STAT. 1783

AMENDMENTS OF SECTION 851.—

(A) Section 851Ca)(l) (relating to definition of regu- 26 USC 851. lated investment company) is amended by striking out "54 Stat. 789;". (B) Section 851(b)(1) (relating to regulated investment companies) is amended by striking out "which began after December 31, 1941". (110)

AMENDMENTS OF SECTION 85 2.—

(A) Subparagraph (C) of section 852(b)(3) (relating to method of taxation of regulated investment companies and their shareholders) is amended by striking out the third sentence. (B)(i) Section 852(b)(3)(D) (iii) is amended by striking out "by 75 percent of so much 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)" and inserting in lieu thereof "by 70 percent of so much of such amounts as equals the amount subject to tax in accordance with section 1201(a)". (ii) The amendment made by clause (i) shall not be considered to affect the amount of any increase in the basis of stock under the provisions of section 852(b)(3)(D) (iii) of the Internal Revenue Code of 1954 which is based upon amounts subject to tax under section 1201 of such Code in taxable years beginning before January 1, 1975. (C) Section 852(d) is amended by inserting after "Investment Company Act of 1940" the'following: "(15 U.S.C. 80a-l and following)". (111) AMENDMENTS OF SECTION 856.— (A) Section 856(c)(1) (relating to real estate investment trusts) is amended by striking out "which began after December 31, 1960". (B) Section 856(c)(6)(D) (relating to definition of other terms) is amended by inserting after "Investment Company Act of 1940, as amended" the following: "(15 U.S.C. 80a-l and following)". (112) AMENDMENT OF SECTION 857.—Section 857(b)(3)(C) (relating to the taxation of capital gains in the case of real estate investment trusts) is amended by striking out the last sentence. (113) AMENDMENTS or SECTION 864.— (A) Subsection (a) of section 864 (definitions relating to determinations of sources of income) is amended to read as follows: "(a) PRODUCED.—For purposes of this part, the term 'produced' includes created, fabricated, manufactured, extracted, processed, cured, or aged." (B) Clauses (i) and (iii) of section 864(c)(4)(B) and subparagraph (C) of section 864(c)(5) (relating to effectively connected income) are each amended by striking out "sale" each place it appears and inserting in lieu thereof "sale or exchange". (C) Section 864(c)(4)(B) (iii) (relating to effectively connected income) is amended by striking out "sold" and inserting in lieu thereof "sold or exchanged".

26 USC 852. •'•''-

Post, p. 1786. ''^ .rX 26 USC 852 °ote.

26 USC 856.

26 USC 857. ' 26 USC 864. "Produced."


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