Page:United States Statutes at Large Volume 92 Part 3.djvu/245

 PUBLIC LAW 95-600—NOV. 6, 1978

92 STAT. 2877

(8) Subparagraph (A) of section 6362(b) (relating to qualified 26 USC 6362. individual income taxes) is amended by striking out "section 56" and inserting in lieu thereof "section 55 or 56". (9) Paragraph (1) of section 6654(f) (relating to tax computed 26 USC 6654. after applications of credit against tax) is amended by striking out "section 56" and inserting in lieu thereof "section 55 or 56". (f) CLERICAL AMENDMENT.—The table of sections for part VI of subchapter A of chapter 1 is amended by adding at the beginning thereof the following new item: "Sec. 55. Alternative Minimum Tax for Taxpayers other than Corporations.". (g) EFFECTIVE DATE.—The amendments made by this section shall

apply to taxable years beginning after December 31, 1978, except that the amendment made by paragraph (1) of subsection (b) shall apply to sales and exchanges made after July 26, 1978, in taxable years ending after such date. SEC. 422. TREATMENT OF INTANGIBLE DRILLING COSTS FOR PURPOSES OF THE MINIMUM TAX. Subsection (b) of section 308 of the Tax Reduction and Simplification Act of 1977 is amended by striking out ", and before January 1, 1978". SEC. 423. AMENDMENT TO DEFINITION OF FOREIGN SOURCE CAPITAL GAIN TAX PREFERENCES. (a) GENERAL RULE.—Section 58(g)(2) (relating to capital gains and stock options) is amended by striking out the period at the end of the last sentence thereof, and inserting the following: "; except that, for purposes of subparagraph (B), preferential treatment shall be deemed not to be accorded to capital gain recognized on the receipt of property (other than money) in exchange for stock of a corporation which is engaged in the active conduct of a trade or business within one or more foreign countries or possessions if (i) such exchange is described in section 332,351,354,355,356, or 361, (ii) such exchange is made in the foreign country or possession in which such corporation's business is primarily carried on, (iii) such exchange is not subject to tax by such foreign country or possession because it is regarded under the laws of such country or possession as a transaction in which gain .or loss is either not realized or not recognized, and (iv) such gain, if it had been realized and recognized under the laws of such country or possession, would not have been accorded preferential treatment and would have been subject to tax at a rate of at least 28 percent (30 percent if the exchange occurs before January 1, 1979). For purposes of computing the minimum tax, if any, which may be payable on a subsequent transaction involving any property received upon the exchange of stock described in the preceding sentence, the property received shall be treated as having the same basis in the taxpayer's hands immediately after such exchange as such stock had immediately before such exchange." (b) EFFECTIVE DATE.—The amendment made by this section shall take effect on the date of the enactment of this Act.

26 USC 55 note.

26 USC 57 note.

26 USC 58.

26 USC 332, 351, 354, 355,, 3^^' 3^^-

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26 USC 58 note.

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