Page:United States Statutes at Large Volume 92 Part 3.djvu/266

 92 STAT. 2898

PUBLIC LAW 95-600—NOV. 6, 1978 (A) by redesignating paragraph (8) as paragraph (9) and by inserting after paragraph (7) the following new paragraph: "(8) COMMUNITY PROPERTY LAWS NOT APPLICABLE.—In the case of a joint return, this subsection shall be applied without regard to community property laws.", (B) by striking out "paragraph (8)(A)" in paragraph (4)(B) and inserting in lieu thereof "paragraph (9)(A)"; and (C) by striking out "paragraph (8)(B)" in paragraph (5)(B) and inserting in lieu thereof "paragraph (9)(B>".

26 USC 37 note.

(4) EFFECTIVE DATES.—

(A) The amendments made by paragraphs (1) and (2) shall apply to taxable years beginning after December 31, 1975. (B) The amendments made by paragraph (3) shall apply to teixable years beginning after December 31, 1977. 26 USC 57.

(b) AMENDMENTS RELATING TO THE MINIMUM TAX.— (1) SPECIAL RULES FOR MINIMUM TAX I N THE CASE OF SUBCHAPTERS CORPORATIONS AND PERSONAL HOLDING COMPANIES.—

(A) Paragraph (1) of section 57(a) (relating to adjusted itemized deductions) is amended by striking out "An amount" and inserting in lieu thereof "In the case of an individual, an amount". (B) The last sentence of section 57(a) (relating to items of tax preference) is amended by striking out "Paragraphs (1), (3), and" and inserting in lieu thereof "Paragraphs (3) and". 26 USC 58.

26 USC 1563. 26 USC 56.

(2) DIVISION OF $IO,OOO AMOUNT AMONG MEMBERS OP CONTROLLED GROUPS.—Subsection (b) of section 58 (relating to mem-

bers of controlled groups) is amended to read as follows: "(b) MEMBERS OF CONTROLLED GROUPS.—In the case of a controlled group of corporations (as defined in section 1563(a)), the $10,000 amount specified in section 56 shall be divided among the component members of such group in proportion to their respective regular tax deductions (within the meaning of section 56(c)) for the taxable year." (3) COMPUTATION OF ADJUSTED ITEMIZED DEDUCTIONS IN THE

26 USC 57.

CASE OF ESTATES AND TRUSTS.—Paragraph (2) of section 57(b) (relating to computation of adjusted itemized deductions in the case of estates and trusts) is amended to read as follows: "(2) SPECIAL RULES FOR ESTATES AND TRUSTS.—

26 USC 642. 26 USC 165. 26 USC 651. 26 USC 661, 69126 USC 642. 26 USC 662.

"(A) IN GENERAL.—In the case of an estate or trust, for purposes of paragraph (1) of subsection (a), the amount of the adjusted itemized deductions for any taxable year is the 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), and "(v) 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 trusts ends,

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