Page:United States Statutes at Large Volume 90 Part 2.djvu/83

 PUBLIC LAW 94-455—OCT. 4, 1976

90 STAT. 1551

(2) EXCESS ITEMIZED DEDUCTIONS DEFINED.—Section 6 7 (b)

is

26 USC 57.

amended to read as follows: " (b) EXCESS ITEMIZED DEDUCTIONS.—

" (1) IN GENERAL.—For purposes of paragraph (1) of subsection (a), the amount of the excess itemized deductions for any taxable year is the amount by which the sum of the deductions for the taxable year other than— " (A) deductions allowable i n a r r i v i n g a t adjusted gross income, " (B) the standard deduction provided by section 141, " (C) the deduction for personal exemptions provided by section 151, " (D) the deduction for medical, dental, etc., expenses provided by section 213, and " (E) the deduction for casualty losses described i n section 165(c)(3), exceeds 60 percent ( b u t does not exceed 100 percent) of the taxpayer's adjusted gross income for the taxable year. " (2) SPECIAL RULE FOR TRUSTS AND ESTATES.—In the case of a

t r u s t or estate, any deduction allowed or allowable for the taxable year— " (A) under section 642(c) (but only to the extent that the amount of the deduction allowable under such section is included in the income of the beneficiary under section 662(a) (1) for the taxable year of the beneficiary with which or within which the taxable year of the t r u s t e n d s); " (B) under section 642'(d), 642(e), 6 4 2 (f), 651 (a), 661 (a), or 691; or " (C) for costs paid or incurred i n connection with the administration of the t r u s t or estate; shall, for purposes of paragraph (1), be treated as a deduction allowable in a r r i v i n g a t an adjusted gross income." (3) STRAIGHT LINE RECOVERY OF INTANGIBLES DEFINED.—Section

,

57 is amended by a d d i n g a t the end thereof the following new subsection: " (d) STRAIGHT L I N E RECOVERY OF INTANGIBLES D E F I N E D. — For p u r -

poses of paragraph (11) of subsection (a) — " (1) IN GENERAL.—The term 'straight line recovery of intangibles', when used with respect to intangible drilling and development costs for any well, means (except in the case of an election under paragraph (2)) ratable amortization of such costs over the 120-month period beginning with the month in which production from such well begins. " (2) ELECTION.—If the taxpayer elects, a t such time and in such manner as the Secretary may by regulations prescribe, with respect to the intangible drilling and development costs for any well, the term 'straight line recovery of intangibles' means any method which would be permitted for purposes of determining cost depletion with respect to such well and which is selected by the tax p a y e r for purposes of subsection (a) ( 1 1). " (4) S P E C I A L RULES FOR TIMBER.— (A) PREFERENCE REDUCTION FOR TIMBER.—Section

57(a)

(9) is amended by adding a t the end thereof the following new subparagraph: " (C) PREFERENCE REDUCTION FOR T I M B E R. — I n the case of a

corporation, the amount of the tax preference under sub-

^"^C' P- 1550.

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