Page:United States Statutes at Large Volume 92 Part 3.djvu/243

 PUBLIC LAW 95-600—NOV. 6, 1978 amount by which the sum of the deductions for the taxable year other than— "(i) the deductions allowable in arriving at adjusted gross income, "(ii) the deduction for personal exemption provided by section 642(b), "(iii) the deduction for casualty losses described in section 165(c)(3), "(iv) the deductions allowable under section 651(a), 661(a), or 691(c), "(v) the deduction for State and local taxes provided by section 164(a), and "(vi) the deductions allowable to a trust under section 642(c) to the extent that a corresponding amount is included in the gross 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 trust ends, exceeds 60 percent of the adjusted gross income reduced by the items in clauses (i) through (vi) for the taxable year." (c) AMENDMENTS OF SECTION 58.—Section 58 (relating to rules for application of part) is amended— (1) by adding at the end of subsection (a) the following new sentence: "In the case of a married individual who files a separate return for the taxable year, the amount determined under paragraph (1) of section 55(a) shall be an amount equal to one-half of the amount which would be determined under such paragraph if the amount of the individual's alternative minimum taxable income were multiplied by 2."; (2) by amending subsection (c) to read as follows: "(c) ESTATES AND TRUSTS.—In the case of an estate or trust— "(1) the sum of the items of tax preference for any taxable year of the estate or trust shall be apportioned between the estate or trust and the beneficiaries on the basis of the income of the estate or trust allocable to each, "(2) the $10,000 amount specified in section 56 applicable to such estate or trust shall be reduced to an amount which bears the same ratio to $10,000 as the portion of the sum of the items of tax preference allocated to the estate or trust under paragraph (1) bears to such sum, and "(3) the liability for the tax imposed by section 55(a) shall be determined as in the case of a married individual filing separately.", and (3) by deleting subsection (i) (relating to the definition of corporation). (d) TAXES TAKEN INTO ACCOUNT IN CASE OF ACCUMULATION DISTRIBUTIONS B TRUSTS.—The second sentence of section 666(b) (relating Y

92 STAT. 2875

26 USC 642. 26 USC 165. 26 USC 651, ^^l' ^91. 26 USC 642. 26 USC 662.

26 USC 58.

26 USC 55.

26 USC 56.

.i

26 USC 666.

to total taxes deemed distributed) is amended by striking out "taxes" and inserting in lieu thereof "taxes (other than the tax imposed by section 55)". (e) TECHNICAL AMENDMENTS.—

(1) Paragraph (4) of section (5)(a) (as redesignated by section 401 26 USC 5. of this Act) (relating to cross references relating to tax on individuals) is amended to read as follows:

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