Page:United States Statutes at Large Volume 96 Part 1.djvu/463

 PUBLIC LAW 97-248—SEPT. 3, 1982

96 STAT. 421

"For election of 10-year amortization of expenditures allowable as a deduction under this section, see section 58(i)."

(10) Subsection (a) of section 7701 (relating to definitions) is 26 USC 7701. amended by adding at the end thereof the following new paragraph: "(38) JOINT RETURN.—The term 'joint return' means a single return made jointly under section 6013 by a husband and wife." (e) EFFECTIVE DATE.—

(1) IN GENERAL.—The amendments made by this section shall 26 USC 55 note. apply to taxable years beginning after December 31, 1982. (2) SPECIAL RULE FOR PRE-1983 SECTION 56 (b) TAX DEFERRALS.— 26 USC 56 note. The amendments made by subsection (c)(1) of this section to section 56(b) of the Internal Revenue Code of 1954 shall not apply to any net operating loss carryover from any taxable year beginning before January 1, 1983, which is attributable to any excess described in section 56(b)(1)(B) of such Code for such taxable year. SEC. 202. LIMITATION ON MEDICAL DEDUCTION.

(a) GENERAL RULE.—Subsection (a) of section 213 (relating to 26 USC 213. deduction for medical, dental, etc., expenses) is amended to read as follows: "(a) ALLOWANCE OF DEDUCTION.—There shall be allowed as a deduction the expenses paid during the taxable year, not compensated for by insurance or otherwise, for medical care of the taxpayer, his spouse, or a dependent (as defined in section 152), to the extent that such expenses exceed 5 percent of adjusted gross income." (b) TREATMENT OF MEDICINE AND DRUGS.—

(1) IN GENERAL.—Subsection (b) of section 213 (relating to limitation with respect to medicine and drugs) is amended to read as follows: "(b) LIMITATION WITH RESPECT TO MEDICINE AND DRUGS.—An

amount paid during the taxable year for medicine or a drug shall be taken into account under subsection (a) only if such medicine or drug is a prescribed drug or is insulin." (2) DEFINITION OF PRESCRIBED DRUG.—Subsection (e) of section

213 is amended by inserting after paragraph (1) the following new paragraphs: "(2) PRESCRIBED DRUG.—The term 'prescribed drug' means a drug or biological which requires a prescription of a physician for its use by an individual. "(3) PHYSICIAN.—The term 'physician' has the itieaning given to such term by section 1861(r) of the Social Security Act (42 U.S.C. 1395x(r))." (3) CONFORMING AMENDMENTS.—

(A) Subsection (e) of section 213 (as in effect before the amendment made by paragraph (2)) is amended by redesignating paragraphs (2), (3), and (4) as paragraphs (4), (5), and (6), respectively. (B) Subsections (d), (e), and (f) of section 213 are redesignated as subsections (c), (d), and (e), respectively. (C) Subsection (b) of section 105 is amended by striking 26 USC 105. out "section 213(e)" and inserting in lieu thereof "section 213(d)". (c) EFFECTIVE DATES.— 26 USC 213 note.

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