Page:United States Statutes at Large Volume 92 Part 3.djvu/288

 92 STAT. 2920

PUBLIC LAW 95-600—NOV. 6, 1978 which begins more than 90 days after the date of the enactment of this Act. (16) NONRESIDENT ALIEN INDIVIDUAL ALLOWED TO BE TREATED AS RESIDENT OF THE UNITED STATES.—

26 USC 6013.

26 USC 6013 note.

(A) IN GENERAL.—Paragraph (2) of section 6013(g) (relating to election to treat nonresident alien individual as resident of the United States) is amended by striking out "who, at the time an election was made under this subsection," and inserting in lieu thereof "who, at the close of the taxable year for which an election under this subsection was made,". (B) EFFECTIVE DATE.—The amendment made by subparagraph (A) shall apply to taxable years beginning after December 31, 1975. (v) AMENDMENT OF SECTION 1239(a).—

26 USC 1239.

26 USC 167. 26 USC 1239 note. 26 USC 1239.

(1) IN GENERAL.—Subsection (a) of section 1239 (relating to gain from sale of depreciable property between certain related taxpayers) is amended by striking out "subject to the allowance for depreciation provided in section 167" and inserting in lieu thereof "of a character which is subject to the allowance for depreciation provided in section 167". (2) EFFECTIVE DATE.—The amendment made by paragraph (1) shall apply as if included in the amendment made to section 1239 of the Internal Revenue Code of 1954 by section 2129(a) of the Tax Reform Act of 1976. (w) RECAPTURE OF DEPRECIATION ON PLAYER CONTRACTS.—

26 USC 1245.

(1) IN GENERAL.—Subparagraph (C) of section 1245(a)(4) (defining previously unrecaptured depreciation with respect to contracts transferred) is amended to read as follows: (C)

PREVIOUSLY

UNRECAPTURED

DEPRECIATION

WITH

RESPECT TO CONTRACTS TRANSFERRED.—For purposes of Subparagraph (A)(ii), the term 'previously unrecaptured depreciation' means the amount of any deduction allowed or allowable to the taxpayer transferor for the depreciation of any contracts involved in such transfer." (2) RECAPTURE OF DEPRECIATION WITH RESPECT TO INITIAL CON-

26 USC 1245 not^-

TRACTS.—Subparagraph (B) of section 1245(a)(4) (defining previously unrecaptured depreciation with respect to initial contracts) is amended— (A) by inserting "attributable to periods after December 31, 1975," after "depreciation" in clause (i), (B) by inserting "incurred after December 31, 1975," after "losses ' in clause (i), and (C) by inserting "described in clause (i)" after "amounts" in clause (ii). (3) EFFECTIVE DATE.—The amendments made by this subsection shall apply to transfers of player contracts in connection with any sale or exchange of a franchise after December 31, 1975. (x) TREATMENT OF PENSIONS AND ANNUITIES FOR 50-PERCENT MAXIMUM RATE ON PERSONAL SERVICE INCOME.—

26 USC 1348.

(1) IN GENERAL.—Subparagraph (A) of section 1348a))(l) (defining personal service income) is amended by striking out "pension or annuity" and inserting in lieu thereof "pension or annuity which arises from an employer-employee relationship or from tax-deductible contributions to a retirement plan". (2) TECHNICAL AMENDMENT.—The last sentence of section 1348(b) is amended by striking out "earned income" and inserting in lieu thereof "personal service income".

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