Page:United States Statutes at Large Volume 90 Part 2.djvu/433

 PUBLIC LAW 94-455—OCT. 4, 1976

9 0 STAT. 1901

(1) the tax imposed by chapter 1 of the I n t e r n a l Revenue Code of 1954 for the taxable year in which the income taken into 26 USC 1. account is received or accrued which is attributable to such income shall not exceed the additional tax under such chapter which would have been payable for the year in which the deduction for the loss was taken if such deduction h a d not been taken for such year, (2) any amount of tax imposed by chapter 1 attributable to the income taken into account which, on October 1, 1975, was unpaid may be paid in 3 equal annual installments (with the first such installment due and payable on April 15, 1977), and (3) no interest on any deficiency shall be payable for any period before April 16, 1977, to the extent such deficiency is attributable to the receipt of such compensation, and n o interest on j any installment referred to i n paragraph (2) shall be payable for any period before the due date of such installment.

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(c) INCOME T A K E N I N TO ACCOUNT. — For purposes of t h i s section,

the income taken into account is— (1) i n the case of a n individual described in subsection (a)(2) (A), the amount of income (not in excess of $5,000) attributable to the cancellation of a disaster loan under section 7 of the Small Business A c to r an emergency loan under subtitle C of the Con- 15 USC 636. solidated F a r m and R u r a l Development Act received by reason 19 USC 1961. of the disaster described in subsection (a)(1), or (2) i n the case of an individual described in subsection (a)(2) (B), the amount of compensation (not in excess of $5,000) for the loss in settlement of any claim of the taxpayer against a person for that person's liability in to r t for the damage or destruction of that taxpayer's property in connection with the disaster described in subsection (a)(1). (d) PHASEOUT W H E R E ADJUSTED GROSS INCOME EXCEEDS $15,000.—

I f for the taxable year for which the deduction for the loss was taken the individual's adjusted gross income exceeded $15,000, the $5,000 limit set forth in paragraph (1) or (2) of subsection (c) (whichever applies) shall be reduced by one dollar for each full dollar that such adjusted gross income exceeds $15,000. I n the case of a married individual filing a separate return, the preceding sentence shall be applied by substituting "$7,500" for "$15,000". (e) STATUTE OF L I M I T A T I O N S. — I f refund or credit of any overpay-

ment of income tax resulting from an election made under tins section is prevented on the date of the enactment of this Act, or a t any time within one year after such date, by the operation of any law, or rule of law, refund or credit of such overpayment (to the extent attributable to such election) may, nevertheless, be made or allowed if claim therefor is filed within one year after such date. I f the taxpayer makes an election under this section and if assessment of any deficiency for any taxable year resulting from such election is prevented on the date of the enactment of t h i s Act, o r a t any time within one year after such date, by the operation of any law or rule of law, such asst^ssment (to the extent attributable to such election) may, nevertheless, be made if .*,-;.• made within one year after such date. -" • SEC. 2104. TAX TREATMENT OF CERTAIN DEBTS OWED BY POLITICAL PARTIES, ETC., TO ACCRUAL BASIS TAXPAYERS. (a) IN GENERAL.—Section 271 (relating to debts owed by political 26 USC 271. parties, etc.) is amended by a d d i n g a t the end thereof the following new subsection:

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