Page:United States Statutes at Large Volume 92 Part 3.djvu/267

 PUBLIC LAW 95-600—NOV. 6, 1978

92 STAT. 2899

exceeds 60 percent (but does not exceed 100 percent) of the adjusted gross income of the estate or trust for the taxable year. "(B) DETERMINATION OF ADJUSTED GROSS INCOME,—For

purposes of this paragraph, the adjusted gross income of an estate or trust shall be computed in the same manner as in the case of an individual, except that— "(i) the deductions for costs paid or incurred in connection with the administration of the estate or trust, and "(ii) to the extent provided in subparagraph (C), the deductions under section 642(c), 26 USC 642. shall be treated as allowable in arriving at adjusted gross income. "(C) TREATMENT OF CERTAIN CHARITABLE CONTRIBUTIONS.—

For purposes of this paragraph, the following deductions under section 642(c) (relating to deductions for amounts paid or permanently set aside for charitable purposes) shall be treated as deductions allowable in arriving at adjusted gross income: "(i) deductions allowable to an estate, "(ii) deductions allowable to a trust all of the unexpired interests in which are devoted to one or more of the purposes described in section 170(c)(2)(B), 26 USC 170. "(iii) deductions allowable to a trust which is a pooled income fund within the meaning of section 642(c)(5), "(iv) deductions allowable to a trust which are attributable to transfers to the trust before January 1, 1977, and "(v) deductions allowable to a trust, all of the income interest of which is devoted solely to one or more of the purposes described in section 170(c)(2)(B), which are attributable to transfers pursuant to a will or pursuant to an inter vivos trust in which the grantor had the power to revoke at the date of his death." (4) SECTION 691(C) DEDUCTION NOT TAKEN INTO ACCOUNT FOR 26 USC 57. DETERMINING ADJUSTED ITEMIZED DEDUCTIONS.—Paragraph (1) of

section 57(b) is amended by striking out "and" at the end of subparagraph (C), by inserting "and" at the end of subparagraph (D), and by inserting after subparagraph (D) the following new subparagraph: "(E) the deduction allowable under section 691(c),". 26 USC 691. (5) EFFECTIVE DATE.—The amendments made by this subsection 26 USC 57 note. shall take effect as if included in the amendments made by section 301 of the Tax Reform Act of 1976. 26 USC 301. (c) SICK PAY.—

(1) IN GENERAL.—Section 105(d) is amended by striking out 26 USC 105. paragraphs (4) and (6), by redesignating paragraph (5) as paragraph (4) and paragraph (7) as paragraph (6), and by inserting after paragraph (4) the following new paragraph: "(5) SPECIAL RULES FOR MARRIED COUPLES.— "(A) MARRIED COUPLE MUST FILE JOINT RETURN.—Except in

the case of a husband and wife who live apart at all times during the taxable year, if the taxpayer is married at the close of the taxable year, the exclusion provided by this subsection shall be allowed only if the taxpayer and his spouse file a joint return for the taxable year.

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