Page:United States Statutes at Large Volume 95.djvu/357

 PUBLIC LAW 97-34—AUG. 13, 1981

95 STAT. 331

futures contracts and positions to which section 1256 applies, Ante, p. 327. or "(B) the sum of the amounts which, but for paragraph (6)(A), would be treated as capital losses in the succeeding taxable year under subparagraphs (A) and (B) of subsection (b)(1). "(5) NET COMMODITY FUTURES GAIN.—For purposes of paragraph (D— "(A) IN GENERAL.—The term 'net commodity futures gain' means the lesser of^ "(i) the capital gain net income for the taxable year determined by taking into account only gains and losses from regulated futures contracts, or "(ii) the capital gain net income for the taxable year. "(B) SPECIAL RULE.—The net commodity futures gain for any taxable year before the loss year shall be computed without regard to the net commodity futures loss for the loss year or for any taxable year thereafter. "(6) COORDINATION WITH CARRYFORWARD PROVISIONS OF SUBSEC-

TION (b)(1).— "(A) CARRYFORWARD AMOUNT REDUCED BY AMOUNT USED AS

CARRYBACK.—For purposos of applying subsection (b)(1), if any portion of the net commodity futures loss for any taxable year is allowed as a carryback under paragraph (1) to any preceding taxable year— "(i) 40 percent of the amount allowed as a carryback shall be treated as a short-term capital gain for the loss year, and "(ii) 60 percent of the amount allowed as a carryback shall be treated as a long-term capital gain for the loss year. "(B) CARRYOVER LOSS RETAINS CHARACTER AS ATTRIBUTABLE TO REGULATED FUTURES CONTRACT.—Any amount carried

forward as a short-term or long-term capital loss to any taxable year under subsection (b)(1) (after the application of subparagraph (A)) shall, to the extent attributable to losses from regulated futures contracts, be treated as loss from regulated futures contracts for such taxable year. "(7) OTHER DEFINITIONS AND SPECIAL RULES.—For purposes of

this subsection— "(A) REGULATED FUTURES CONTRACT.—The term 'regulated futures contract' means any regulated futures contract (as defined in section 1256(b)) to which section 1256 applies. "(B) EXCLUSION FOR ESTATES AND TRUSTS.—This subsection shall not apply to any estate or trust." SEC. 505. CERTAIN GOVERNMENTAL OBLIGATIONS ISSUED AT DISCOUNT TREATED AS CAPITAL ASSETS.

(a) GENERAL RULE.—Section 1221 (defining capital asset) is 26 USC 1221. amended by striking out paragraph (5) and by redesignating paragraph (6) as paragraph (5). (b) TREATMENT OF AMOUNTS RECEIVED ON SALE OR OTHER DISPOSI-

TION.—Subsection (a) of section 1282 (relating to bonds and other 26 USC 1232. evidences of indebtedness) is amended by adding at the end thereof the following new paragraph: "(4) CERTAIN SHORT-TERM GOVERNMENT OBLIGATIONS.—

"(A) IN GENERAL.—On the sale or exchange of any shortterm Government obligation, any gain realized which does

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