Page:United States Statutes at Large Volume 92 Part 3.djvu/282

 92 STAT. 2914 26 USC 907. 26 USC 1212. 26 USC 904 "***^-

PUBLIC LAW 95-600—NOV. 6, 1978 related loss where section 907 applies) is amended by striking out "or any capital loss carrybacks and carryovers to such year under section 1212". (C) EFFECTIVE DATE.—The amendments made by this paragraph shall apply— (i) to overall foreign losses sustained in taxable years beginning after December 31, 1975, and (ii) to foreign oil related losses sustained in taxable years ending after December 31, 1975, (5) EFFECTIVE DATE FOR RECAPTURE OF FOREIGN OIL RELATED LOSSES.—

26 USC 904 °ote-

(A) IN GENERAL.—Paragraph (1) of section 1032(c) of the Tax Reform Act of 1976 is amended to read as follows: "(1) IN GENERAL.—Except as provided in paragraphs (2), (3), and (5), the amendment made by subsection (a) shall apply to losses sustained in tsixable years beginning after December 31, 1975. The amendment made by subsection (b)(1) shall apply to taxable years beginning after December 31, 1975. The amendment made by subsection (b)(2) shall apply to losses sustained in taxable years ending after December 31, 1975."

26 USC 904

(B) FOREIGN OIL RELATED LOSSES.—Subsection (c) of section

note.

26 USC 904

note.

26 USC 904.

26 USC 904 note.

1032 of the Tax Reform Act of 1976 is amended by adding at the end thereof the following new paragraph: "(5) FOREIGN OIL RELATED LOSSES.—The amendment made by subsection (a) shall apply to foreign oil related losses sustained in taxable years ending after December 31, 1975." (6) TRANSITIONAL RULES FOR CERTAIN MINING OPERATIONS.—The

second sentence of paragraph (2) of section 1031(c) of the Tax Reform Act of 1976 is amended to read as follows: "In the case of a loss sustained in a taxable year beginning before January 1, 1979, by any corporation to which this paragraph applies, if section 904(a)(1) of such Code (as in effect before the enactment of this Act) applies with respect to such taxable year, the provisions of section 904(f) of such Code shall be applied with respect to such loss under the principles of such section 904(a)(1)." (7) TRANSITIONAL RULES FOR RECAPTURE OF CERTAIN FOREIGN LOSSES.— (A) COMPUTATION OF DEFICIT IN EARNINGS AND PROFITS FOR PURPOSES OP THE RECAPTURE OF CERTAIN FOREIGN LOSSES.—

Paragraph (4) of section 1032(c) of the Tax Reform Act of 1976 (relating to limitation based on deficit in earnings and profits for purposes of the recapture of foreign losses) is amended by adding at the end thereof the following new sentence: "For purposes of the preceding sentence, there shall be taken into account only earnings and profits of the corporation which (A) were accumulated in teixable years of the corporation beginning after December 31, 1962, and during the period in which the stock of such corporation from which the loss arose was held by the taxpayer and (B) are attributable to such stock." (B) RECAPTURE OF POSSESSION LOSSES DURING TRANSITIONAL PERIOD W H E R E TAXPAYER IS ON A PER-COUNTRY BASIS.—

26 USC 904 note.

(i) Subsection (c) of section 1032 of the Tax Reform Act of 1976 (relating to effective dates for recapture of foreign losses) is amended by adding at the end thereof the following new paragraph:

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