Page:United States Statutes at Large Volume 91.djvu/172

 91 STAT. 138

PUBLIC LAW 95-30—MAY 23, 1977

26 USC 613A.

26 USC 667. ' 5:;::

^

amount. The tax shall be the same part of the tax computed on the annual basis as the number of months in the short period is of 12 months." (7) Paragraph (1) of section 613A(d) (relating to limitation on percentage depletion based on taxable income) is amended by inserting ' ' (reduced in the case of an individual by the zero bracket a m o u n t) " after "the taxpayer's taxable income". (8) Paragraph (2) of section 667(b) (relating to tax on amount deemed distributed by trust in preceding years) is amended to read as follows: " (2) TREATMENT OF LOSS YEARS.—For purposes of

26 USC 861.

26 USC 862.

26 USC 904.

26 USC 911. Ante, p. 127.

26 USC 1034. ^rete, p. 135. 26 USC 1211. - •'. s. 26 USC 1302.

paragraph

(1), the taxable income of the beneficiary for any taxable year • shall be deemed to be not less than— " (A) in the case of a beneficiary who is an individual, the zero bracket amount for such year, or " (B) in the case of a beneficiary who is a corporation, zero." . =.,. (9) Subsection (b) of section 861 (relating to income from sources within the United States) is amended by adding a t the end thereof the following new sentence: " I n the case of an individual who does not itemize deductions, an amount equal to the zero bracket amount shall be considered a deduction which cannot definitely be allocated to some item or class of gross income.", (10) Subsection (b) of section 862 (relating to income from sources without the United States) is amended by a d d i n g a t the end thereof the following new sentence: " I n the case of an individual who does not itemize deductions, an amount equal to the zero bracket amount shall be considered a deduction which cannot definitely be allocated to some item or class of gross income." (11) Subsection (a) of section 904 (relating to limitation on, foreign tax credit) is amended by a d d i n g a t the end thereof the following new sentence: " For purposes of the preceding sentence, in the case of a n individual the entire taxable income shall be reduced by an amount equal to the zero bracket amount." (12) Subparagraph (B) of section 9 1 1 (d)(1) (relating to computation of tax where there is earned income from sources without the United States) is amended to read as follows: " (B) the tax imposed by section 1 or section 1201 (whichever is applicable) on the sum of— " (i) the amount of net excluded earned income, and " (ii) the zero bracket amount." (13) Clause (i) of section 1034(b)(2)(C) (relating to limitations on sales price adjustment) is amended by striking out "section 6 3 (a) " and inserting i n lieu thereof "section 63". (14) Subparagraph (A) of section 1211(b)(1) (relating to limitation on capital losses) is amended to read as follows: " (A) the taxable income for the taxable year reduced (but not below zero) by the zero bracket amount,". (15) Section 1302(b) (defining average base period income) is amended by a d d i n g a t the end thereof the following new paragraph: " (3) TRANSITIONAL RULE FOR DETERMINING BASE PERIOD INCOME.—

The base period income (determined under paragraph (2)) for any taxable year beginning before January 1, 1977, shall be increased by the amount of the taxpayer's zero bracket amount for the computation year."

�