text:
Page:United States Statutes at Large Volume 78.djvu/62

 20

PUBLIC LAW 88-272-FEB. 26, 1964 "If the taxable income i s: Over $14,000 but not over $16,000 Over Over Over Over Over Over Over Over Over Over Over Over Over Over Over

The tax i s: $3,790, plus 4 1 % of $14,000. $16,000 b u t not over $18,000 $4,610, p l u s 44.5% o(C $16,000. $18,000 b u t not over $20,000 $5,500, plus 47.5% of $18,000. .$20,000 b u t not over $22,000 $6,450, plus 50.5% of $20,000. .$22,000 but not over $26,000 $7,460, plus.53.5% of $22,000. $26,000 b u t not over $32,000 $9,600, plus 5 6 % of $26,000. $32,000 b u t not over $38,000 $12,960, plus.")8.5% of $32,000. $38,000 but not over.$44,000 $16,470, plus 6 1 % of $38,000. .$44,000 b u t not over $50,000 $20,130, plus 63.5% of $44,000. $50,000 b u t not over $60,000 $23,940, p l u s 6 6 % of $50,000. $60,000 but not over $70,000 $30,.540, plus 68.5% of $60,000. $70,000 but not over $80,000 .$37,390, plus 7 1 % of $70,000. $80,000 b u t not over.$90,000 .$44,490, plus 73.5% of $80,000. $90,000 but nut over $100,000__-..$51,840, plus 7 5 % of $90,000. $100,000 but not over $200,000— $59,340, plus 76.5% of $100,000. .$200,000 —..- .$135,840, plus 7 7 % of $200,000.

"(2)

T A X A B L E YEARS B E G I N N I N G AFTER DECEMBER:n,

[78 STAT. excess

over

excess over excess over excess over excess over excess

over

excess over excess

over

excess over excess over excess over excess

over

excess over excess

over

excess over excess over 1964.—In

the case of a taxable year beginning after Decemlier 31, 1964, there is hereby imposed on the taxable income of every hidividual (other than a head of a household to whom subsection (b) applies) a tax determined in accordance with the following table: "If the taxable income i s: Not over $500 Over $.500 b u t not over $1,000 Over $1,000 b u t not over $1,500 Over.$1..500 b u t not over $2,000 Over $2,000 b u t not over $4,000 Over.$4,000 b u t not over.$6,000 Over.$6,000 b u t not over $8,000 Over Over Ovor Over Over Over Over Over Over Over Over

The tax i s: 14% of the taxable income. .$70, plus 1 5 % of excess over.$.500. $145, plus 16% of excess over $1,000. $225, plus 1 7 % of excess over $1,500. $310, plus 1 9 % of excess «jver $2,000. $690, plus 2 2 % of excess over $4,000. $1,130, plus 2 5 % of excess over $6,000. $8,000 b u t not over $10,000 ,$1,630; plus 2 8 % of excess over $8,000. $10,000 but not over $12,000_-,. $2,190, plus 3 2 % of excess over $10,000. .$12,0(X) but not over.$14,000--. $2,830, plus.36% of excess over $12,000. $14,000 but not over $16,000 $3,5.50, plus 39o; „f exi-ess over $14,000. $16,000 but not over.$18,000 .$4,330, plus 42'''; of excess over $16,000. .$1.S,0(K> luit n«»t over.$20,000 .$.^,170, plus 45';» «»f excess «.ver $18,000. .$20,(H^H) but not over.$22,000. .$6,070, plus 48% of excess over $20 000. .$22,000 hut not over.$20,000.$7,030, pins.'»0% of excess over $22 000. .$26.(KK> Imf not over.$82,000..$9,030, plus.537' of excess over .$26 000. .$32.(»(K) Init nol, over.$.S8,000 $ 1 2 ^ 0, plus.'.5% of excess over $32 000. .$38.(KK» b u t not over.$44,000. $1.5..5io, pins.58% of excess over $38,000.

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text:
Page:United States Statutes at Large Volume 78.djvu/63

 78 STAT. ]

PUBLIC U W 88-272-FEB. 26, 1964

"If the taxable income i s: Over $44,000 b u t not over $50,000 Over $50,000 but not over Over $60,000 b u t not over Over $70,000 b u t not over Over $80,000 b u t not over Over $90,000 b u t not over Over

$100,000

The tax i s: $18,990, plus $44,000. $60,000— $22,590, plus $50,000. $70,000— $28,790, plus $60,000. $80,000 $35,190, plus $70,000. $90,000— $41,790, plus $80,000. $100,000__ $48,590, plus $90,000. $55,490, plus $100,000."

(b) HEADS OF HOUSEHOLDS.—Paragraph

21

60% of excess

over

6 2 % of excess

over

6 4 % of excess

over

(1)

6 6 % of excess over 6 8 % of excess

over

6 9 % of excess over 7 0 % of excess over

of

section 1(b)

(relating to rates of tax on heads of households) is amended to read as follows: " (1)

EATES OF TAX.— " (A) TAXABLE YEARS BEGINNING I N 1964.—In

the case of a taxable year beginning on or after January 1, 1964, and before January 1, 1965, there is hereby imposed on the taxable income of every individual who is the head of a household a tax determined in accordance with the following table: "If the taxable income i s: Not over $1,000 Over $1,000 b u t not over $2,000 Over Over Over Over Over Over Over Over Over Over Over Over Over Over

The tax is: 1 6 % of the taxable income. $160, plus 17.5% of excess $1,000. $2,000 b u t not over $4,000 $335, pli^is 1 9 % of excess $2,000. $4,000 b u t not over $6,000 $715, plus 2 2 % of excess $4,000. $6,000 b u t not over $8,000 $1,155, plus 2 3 % of excess $6 000 $8,000 b u t not over $10,000 $1,615, plus 2 7 % of excess $8 000 $10,000 b u t not over $12,000__ $2,155, plus 2 9 % of excess $10,000. $12,000 b u t not over $14,000__ $2,735, plus 3 2 % of excess $12,000. $14,000 b u t not over $16,000__ $3,375, plus 3 4 % of excess $14,000. $16,000 b u t not over $18,000__ $4,055, plus 37.5% of excess $16 000 $18,000 b u t not over $20,000__ $4,805, plus 3 9 % of excess $18,000. $20,000 b u t not over $22,000__ $5,585, plus 42.5% of excess $20 000. $22,000 b u t not over $24,000__ $6,435, plus 43.5% of excess $22 000 $24,000 but not over $26,000__ $7,305, plus 45.5% of excess $24,000. $26,000 b u t not over $2S,000__ $8,215, plus 4 7 % of excess $26,000. $28,000 b u t not over $32,000__ $9,155, plus 48.5% of excess

over over over over over over over over over over over over over over over

coo QQO

Over $32,000 b u t not over $36,000__ Over $36,000 b u t not over $3S,000__ Over $38,000 but not over $40,000__ Over $40,000 b u t not over $44,000__ Over $44,000 but not over $50,000__ Over $50,000 b u t not over $52,000__ Over $.J2,000 but not over $60,000__

$llio95, plus $32,000. $13,155, plus $36,000. $14,215, plus $38 000 $15,295. plus $40 000 $17,535, plus $44 000 $21,045, plus $50 000 $22,235, plus $52,000.

51.5% of excess over 5 3 % of excess

over

54% of excess

over

5 6 % of excess over 58.5% of excess over 59.5% of excess over 0 1 % of excess over

se'uscT*!.^'

�

license: Creative Commons - Attribution Share-Alike - https://creativecommons.org/licenses/by-sa/4.0/


text:
Page:United States Statutes at Large Volume 78.djvu/64

 22

PUBLIC LAW 88-272-FEB. 26, 1964

[78 STAT.

"If the taxable income i s: The tax i s: Over $60,000 b u t not over $64,000— $27,115, plus 6 2 % of $60,000. Over $64,000 but uot over $70,000— $29,595, plus 63.5% of $64,000. Over $70,000 b u t not over $76,000— $33,405, plus 6 5 % of $70,000. Over $76,000 but not over.$80,000__ $37,305, plus 6 6 % of $76,000. (Jver $80,000 b u t not over $88,000— $39,945, plus 6 7 % of $80,000. o v e r $88,000 but not over $90,000— $45,305, plus 6 9 % of $88,000. Over $90,000 b u t uot over $100,000— $46,685, plus 69.5% of $90,000. Over $100,000 but not over $120,000— $53,635, plus 7 1 % of $100,000. Over $120,000 b u t not over $140,000— $67,835, plus 72.5% of $120,000. Over $140,000 b u t not over $160,000— $82,335, plus 7 4 % of $140,000. Over $160,000 b u t not over $180,000— $97,135, plus 7 5 % of $160,000. Over $180,000 b u t not over $200,000— $112,135, plus 75.5%, of $180,000. (Jver $200,000 $127,235, plus 7 7 % of $200,000. "(B)

TAXAHLE

YEARS

REGINNING

AFTER

excess

over

excess over excess

over

excess

over

excess

over

excess

over

excess over excess

over

excess over excess

over

excess

over

excess over excess over

DECEMMER

.SI,

iu(!4.—III the case of a taxable year beginning after December ol, 1J)4, there is hereby imposed on the taxable income of every individual who is the head of a household a tax determined in accordance with the following table: "If the taxable income i s: Not over $1,000 Over $1,000 b u t not over Over $2,000 but not over Over $4,000 b u t not over Over $6,000 b u t not over

$2,000 $4,000 $6,000 $8,000

Over $8,000 but not over $10,000 Over $10,000 b u t not over $12,000 Over $12,000 but not over $14,000 Over $14,000 b u t not over $16,000 Over $16,000 b u t not over $18,000 (•ver.$18,000 b u t not over $20,000 Ov«u- .$20,000 but not over $22,000 Over $22,000 b u t not over $24.000 <^)ver.$24.0(X) but not over $26.000 Over.$26,000 b u t not over.$28,000 Over.$28,000 b u t not over $32,000 (Uri- .$32.(XX> b u t not over $36,000 Over.$36,000 but not over $38.000 Over.$'i8.000 but uot over $40,000 Over $40,000 b u t not over $44,000 Over $44.0(X) but not over $50,000

The tax i s: 14% of the tax a b l e income. $140, plus 16% of excess over $1,000. $300, plus 1 8 % of excess over $2,000. $660, plus 2 0 % of excess over $4,000. $1,060, plus 2 2 % of excess over $6,000. $1,500, plus 2 5 % of excess over $8,000. $2,000, plus 2 7 % of excess over $10,000. $2,540, plus 3 1 % of excess over $12,000. $3,160, plus 3 2 % of excess over $14,000. $3,800, plus 3 5 % of excess over $16,000. $4,500, plus 3 6 % of excess over $18,000. .$5,220, plus 4 0 % of excess over $20,000. $6,020, plus 4 1 % of excess over .$22,000. $6,840. plus 4 3 % of excess over $24,000. $7,700, plus 4 5 % of excess over $26,000. $8,600, plus 4 6 % of excess over $28,000. $10,440, plus 4 8 % of excess over $32,000. $12,360, plus 5 0 % of excess over $36,000. $13,360, plus 5 2 % of excess over $38,000. $14,400, plus 5 3 % of excess over $40,000. $16,520, plus 55% of excess over $44,000.

�


text:
Page:United States Statutes at Large Volume 78.djvu/65

 78 STAT. ]

PUBLIC LAW 88-272-FEB. 26, 1964

"If the taxable income i s: Over $50,000 but not over $52,000

The tax i s: $19,820, plus 56% of $50,000. Over $52,000 but not over $64,000 $20,940, plus 58% of $52,000. Over $64,000 but not over $70,000 $27,900, plus 59% of $64,000. Over $70,000 but not over $76,000 $31,440, plus 61% of $70,000. Over $76,000 but not over $80,000 $35,100, plus 62% of $76,000. Over $80,000 but not over $88,000 $37,580, plus 63% of $80,000. Over $88,000 but not over $100,000— $42,620, plus 64% of $88,000. Over $100,000 but not over $120,000— $50,300, plus 66% of $100,000. Over $120,000 but not over $140,000— $63,500, plus 67% of $120,000. Over $140,000 but not over $160,000— $76,900, plus 68% of $140,000. Over $160,000 but not over $180,000— $90,500, plus 69% of $160,000. Over $180,000 $104,300, plus 70% of $180,000." SEC. 112. MINIMUM STANDARD DEDUCTION. (a) GENERAL RUI>E.—Section 141 (relating to standard

23

excess over excess over excess over excess over excess over excess over excess over excess over excess over excess over excess over excess over

deduction)

is amended to read as follows: "SEC. 141. STANDARD DEDUCTION. "fa) STANDARD DEDUCTION.—Except as otherwise provided in this section, the standard deduction referred to in this title is the larger of the 10-percent standard deduction or the minimum standard deduction. The standard deduction shall not exceed $1,000, except that in the case of a separate return by a married individual the standard deduction shall not exceed $500. " (b) TEN-PERCENT STANDARD DEDUCTION.—The 10-percent standard deduction is an amount equal to 10 percent of the adjusted gross income. "(c) MINIMUM STANDARD DEDUCTION.—The minimum standard deduction is an amount equal to the sum of— " (1) $100, multiplied by the number of exemptions allowed for the taxable year as a deduction under section 151, plus "(2)(A) $200, in the case of a joint return of a husband and wife under section 6013, " (B) $200, in the case, of a return of an individual who is not married, or " (C) $100, in the case of a separate return by a married individual. " (d) MARRIED iNoivmuALS F I L I N G SEPARATE RETURNS.—Xotwithstanding subsection (a) — " (1) The minimum standard deduction shall not apply in the case of a separate return by a married individual if the tax of the other spouse is determined with regard to the 10-percent standard deduction. "(2) A married individual filing a sep.Trate return may, if the minimum standard deduction is less than the 10-percent standard deduction, and if the minimum standard deduction of his spouse is greater than the 10-peiv.ent standard deduction of such sjwuse, elect (under regulations prescribed by the Secretary or his delegate) to have his tax determined with regard to the minimum standard deduction in lieu of being determined with regard to the lO-percent standard deduction." 31-667 0-65—5

68A Stat. 40. 26 USC 141.

^^ "^^ ^^^' 26 USC eo 13.

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text:
Page:United States Statutes at Large Volume 78.djvu/66

 24 68A Stat. 8. 26 USC 2. Post, p. 129; Ante, p. 23. 26 USC 3, 141. Post, p. 110. 26 USC 144.

26 USC 6212.

26 USC 6504.

Post, p. 32. 2© use 37.

PUBLIC LAW 88-272-FEB. 26, 1964

[78 STAT.

(b) AMENDMENT OF SECTION 2.—The second sentence of section 2(a) (relating to tax in case of joint return or return of surviving spouse) is amended by striking out "and section 3 " and inserting in lieu thereof ", section 3, and section 141". (c) AMENDMENTS OF SECTION 144.—

(1) The first sentence of section 144(b) (relating to change of election of standard deduction) is amended to read as follows: "Under regulations prescribed by ther Secretary or his delegate, a change of election with respect to the standard deduction for any taxable year may be made after the filing of the return for such year." (2) Section 144 is amended by adding at the end thereof the following new subsection: "(c) CHANGE OF ELECTION DEFINED.—For purposes of this title, the term 'change of election with respect to the standard deduction' means— "(1) a change of an election to take (or not to take) the standard deduction; "(2) a change of an election to pay (or -jiot to pay) the tax under section 3; or "(3) a change of an election under section 141(d)(2)." (d) CONFORMING AMENDMENTS.—

(1) Subparagraph (A) of section 6212(c)(2) (relating to crosB references) is amended by striking out "to take" and inserting in lieu thereof "with respect to the". (2) Paragraph (3) of section 6504 (relating to cross references) is amended by striking out "to take" and inserting in lieu thereof "with respect to the". SEC. 113. RELATED AMENDMENTS. (a) RETIREMENT INCOME CREDIT.—Section 37(a)

(relating

to

Ante, p. 19. 26 USC 1.

<;redit against tax for retirement income) is amended by striking out "an amount equal to the amount received by such individual as retirenient income (as defined in subsection (c) and as limited by subsection (d)), multiplied by the rate provided in section 1 for the first $2,000 of taxable income;" and inserting in lieu thereof "an amount equal to 17 percent, in the case of a taxable year beginning in 1964, or 15 percent, in the case of a taxable year beginning after December 31, 1964, of the amount ret^eived by such hidividual as retirement income (as defined in sul)section (c) and as limited by subsection (d)); ".

26 USC 871.

(b) TAX ON XONRESIDENT ALIEN INDIVIDITALS.—Section 871 (relat-

ing to tax on nonresident alien individuals) is amended— (1) By striking out "is more than $15,400, except that^—" in supsection (b) and inserting in lieu thereof "is more than $19,000 ill the case of a taxable year beginning in 1964 oi* more than $21,2(K* in the case of a taxable year beginning after 1964, except that—". (2) By striking out the heading to subsection (a) and inserting in lieu theivof the following: " (a) Xo rNiTKi) STATUS BUSINESS—30 PERCENT T A X. — ".

(3) By stnking out the heading to subsection (b) and insei"ting in lieu thereof the following: " (b) Ni > r N rrED STAIKS B i SIN ESS REGULAR T A X. -". SEC. 114. ("ROSS REFERENCES TO TAX TABLES, ETC. (1) For optional tax if adjusted ti^ross income is less than $5,000, see section 301 of this Act. (2) For income tax collected at source, see section.302 of this Act.

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Page:United States Statutes at Large Volume 78.djvu/67

 78 STAT. ]

PUBLIC LAW 88-272-FEB. 26, 1964

25

PART II—CORPORATIONS SEC. 121. REDUCTION OF TAX ON CORPORATIONS. Section 11 (relating to tax on corporations) is amended to read as follows: "SEC. 11. TAX IMPOSED. " (a) CORPORATIONS I N GENKRAL.—A tax is hereby imposed

26Jsc*nV*

for

each taxable year on the taxable income of eveiy corporation. The tax shall consist of a normal tax computed under subsection (b) and a surtax computed under subsection (c). " (b) NORMAL TAX.—The normal tax is equal to the following percentage of the taxable income: "(1) 30 percent, in the case of a taxable year beginning before January 1, 1964, and "(2) 22 percent, in the case of a taxable year beginning after December 31, 1963. "(c) SURTAX.—The surtax is equal to the following percentage of the amount by which the taxable income exceeds the surtax exemption for the taxable year: "(1) 22 percent, in the case of a taxable year beginning before January 1, 1964, "(2) 28 percent, in the case of a taxable year beginning after December 31, 1963, and before January 1, 1965, and "(3) 26 percent, in the case of a taxable year beginning after December 31, 1964. " (d) SURTAX EXEMPTION.—For purposes of this subtitle, the surtax exemption for any taxable year is $25,000, except that, with respect to a corporation to which section 1561 (relating Post,p.ii6. to surtax exemptions in case of certain controlled corporations) applies for the taxable year, the surtax exemption for the taxable year is the amount determined under such section. "(e) ExcEPiTONS.—Subsection (a) shall not apply to a corporation subject to a tax imposed by— "(1) section 594 (relating to mutual savings banks con- 26 USC 594. ducting life insurance business), 26 "(2) subchapter L (sec. 801 and following, relating to aeq. u s e 801 et insurance conipanies), "(3) subchapter M (sec. 851 and following, relating to ^^26 USC 85iet regulated investment companies and real estate investment tnists^, or "(4) section 881(a) (relating to foreign corporations not 26 USC 88i. engaged in business in United States)." SEC. 122. CURRENT TAX PAYMENTS BY CORPORATIONS. (a) INSTALLMENT PAYMENTS OF ESTIMATED INCOME TAX BY COR-

i*ORATiONS.—Section 6154 (relating to installment payments of estimated income tax by corporations) is amended to read as follows: "SEC. 6154. INSTALLMENT PAYMENTS OF ESTIMATED INCOME TAX BY CORPORATIONS.

^^ ^^^ ^^^'*-

" (a) AMOUNT AND T I M E FOR PAYMENT OF EACJI INSTALLMENT.—

The amount of estimated tax (as defined in section 6016(b)) with respect to which a declaration is required under section 6016 shall be paid as follows: " (1) PAYMENT I N 4 INSTALLMENTS.—If the declaration is filed on or l>efore the 15th day of the 4th month of the taxable year, the estimated tax shall be paid in 4 installments. The aniount

seusceoie.

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text:
Page:United States Statutes at Large Volume 78.djvu/68

 26

PUBLIC LAW 88-272-FEB. 26, 1964

[78 STAT.

and time for payment of each installment shall be (leterniine<l in accordance with the following table: The following percentages of the estimated tax shall be paid on the 15th day of the—

"If the taxable year begins in—

4th month

Post, p. 28. 26 USC 6074.

9th month

1 4 9 14 19 22 26

1964 19651966 1967 1968 1969 1970 or any subsequent year

6th month

1 4 9 14 19 22 25

25 25 25 25 25 25 25

12th month

25 25 25 25 25 25 25

"(2) PAYMENT I N 3 INSTALLMENTS.—If the declaration is filed after the 15th day of the 4th month and not after the 15th day of the Gth month of the taxable year, and is not required by section 6074(a) to be filed on or before the 15th day of such 4th month, the estimated tax shall be paid in 3 installments. The amount and time for payment of each installment shall be determined in accordance with the following table: The following percentages of the estimated tax Siall be paid on the 15th day of the—

"If the taxable year begins in—

6th month 9th month 12t}i month

1964 1965 1966 1967 1968 1969 1970 or any subsequent year

25>'3

12 _-

18/3 25/3 29/3 33/3

26>i 28 29?^ 31/3

32/, 33)^

25>^ 26y3 28 29% 31H 32>^ 33H

"(3) PAYMENT I N 2 INSTALLMENTS.—If the declaration of estimated tax is filed after the 15th day of the 6th month and not after the 15th day of the 9th month of the taxable year, and is not required by section 6074(a) to be filed on or before the 15th day of such 6th month, the estimated tax shall be paid in 2 installments. The amount and time for payment of each installment shall be determined in accordance with the following table: The following percentages of the estimated tax shall be paid on the 15th day of the—

"If the taxable year begins in—

9th month 12th mouth

1964 1965 1966 1967 1968 1969 1970 or any subsequent year

- _-- -- --

26 29 34 39 44 47 50

26 29 34 39 44 47 50

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text:
Page:United States Statutes at Large Volume 78.djvu/69

 78 STAT. ]

PUBLIC LAW 88-272-FEB. 26, 1964

27

" (4) PAYMENT IX i INSTALLMENT.—If the declaration of estimated tax is filed after the 15th day of the 9th month of the taxable year, and is not required by section 6074(a) to be filed on or before the 15th day of such 9th month, the estimated tax shall be paid in 1 installment. The amomit and time for payment of the installment shall be determined in accordance with the following table: "If the taxable year begins In—

The following percentages of the estimated tax shall be paid on the 16th day of the 12th month 52 58 68 78 88 94 100

1964_ 1965 1966 1967._ -. 1968 1969 1970 or any subsequent year

"(5) LATE FILING.—If the declaration is filed after the time prescribed in section 6074(a) (determined without regard to any extension of time for filing the declaration under section 6081), paragraphs (2), (3), and (4) of this subsection shall not apply, and theias shall be paid at the time of such filing all installments of estimated tax which would have been payable on or before such time if the declaration had been filed within the time prescribed in section 6074(a), and the remaining installments shall be paid at the times at which, and in the amounts in which, they would ha^'e been payable if the declaration had been so filed. "(b)

AMENDMENT OF DFXL'LARATION.—If

^e usc*6?74.

any

amendment

of

a

declaration is filed, the amount of each remaining installment (if any) shall be the amount which would have been payable if the new estimate had been made when the first estimate for the taxable year was made, increased or de(.*reased (as the case may be), by the amount computed by dividing— "(1) the difference between (A) the amount of estimated tax required to be paid before the date on which the amendment is made, and (B) the amount of estimated tax which would have been required to be paid before such date if the new estimate had been made when the first estimate was made, by "(2) the number of installments remaining to be paid on or after the date on which the amendment is made. " (c) Ari'Tj(v\TioN TO SHORT TAXABLE YEAR.—The application of this sectix)n to taxable years of less than 12 months shall be in accordance with regulations prescribed by the Secretary or his delegate. " (d) INSTALLMENTS PAID IX AOVAXCE.—At the election of

the

corporation, any installment of the estimated tax may be paid before the date prescribed for its payment." (b) T I M E FOR F I L I N G DE(*I>ARATIOXS OF ESTIMATED IXCO^IE TAX BY

Cinn'OKATiox-s.-Secf ion 6074 (relating to time for filing declarations of e.**timaied iiK-ome tax by corporations) is amended to read as follows:

68A Stat. 751. 26 USC 6081.

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Page:United States Statutes at Large Volume 78.djvu/70

 28

26 USC 6016.

PUBLIC LAW 88-272-FEB. 26, 1964

[78 STAT.

"SEC. 6074. TIME FOR FILING DECLARATIONS OF ESTIMATED INCOME TAX BY CORPORATIONS. " (a) GENERAL RULE. — The declaration of estimated tax required of corporations by section 6016 shall be filed as follows: "If the requirements of section 6016 are first met—

before the 1st day of the 4th month of the taxable year after the last day of the 3d month and before the 1st day of the 6th month of the taxable year after the last day of the 5th month and before the 1st day of the 9th month of the taxable year after the last day of the 8th month and before the 1st day of the 12th month of the taxable year

The declaration shall be filed on or before—

the 15th day of the 4th month of the taxable year the 15th day of the 6th month of the taxable year the 15th day of the 9th month of the taxable year the 15th day of the 12th month of the taxable year

" (b) AMENDMENT.—An amendment of a declaration may be filed in any interval between installment dates prescribed for the taxable year, but only one amendment may be filed in each such interval. "(c) SHORT TAXABLE YEAR.—The application of this section to taxable years of less than 12 months shall be in accordance with regulations prescribed by the Secretary or his delegate." (c) FAILURE BY CORPORATIONS TO P A Y ESTIMATED INCOME T A X. — 68A Stat. 8 2 5. 26 USC 6655.

(1) The last sentence of section 6655(c)(2) (relating to period of underpayment) is amended to read as follows: "For purposes of this paragraph, a payment of estimated tax on any installment date shall be coiisidered a payment of any previous underpayment only to the extent such payment exceeds the amount of the installment determined under subsection (b)(1) for such installment date." (2) Paragraph (3) of section 6655(d) (relating to exception) is amended to read as follows: "(3)(A) An amount equal to 70 percent of the tax for the taxable year computed by placing on an annualized basis the taxable income: " (i) for the first 3 months of the taxable year, in the case of the installment required to be paid in the Jrth month, "(ii) for the first 3 months or for the first 5 months of the taxable year, in the case of the installment required to be paid in the 6th month, "(iii) for the first 6 months or for the firet 8 months of the taxable year in the case of the installment required to be paid in the 9th month, and (iv) for the first 9 months or for the first 11 months of the taxable year, in the case of the installment require<l to be paid in the 12t]i month of the taxable year. " (B) For purposes of this paragraph, the taxable income shall be placed on an annualized basis by— " (i) multiplying by 12 the taxable income referred to in subparagraph (A), and "(ii) dividing the resulting amount by the number of months in the taxable year (3, 5, 6, 8, 9, or 11, as the case may be) referred to in subparagraph (A)."'

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Page:United States Statutes at Large Volume 78.djvu/71

 78 STAT. ]

PUBLIC LAW 88-272-FEB. 26, 1964

(d) TECHXICAI,

AMENDMENT.—Section

6016(f)

29 (relating

to

ll%lc''6o\f:

declarations of estimated income tax by corporations) is amended to read as follows: "(f)

CROSS REFEHEXCE.— "For provisions relating to the number of amendments which may be filed, see section 6074(b)." SEC. 123. RELATED AMENDMENTS. (a) TAX ON MUTUAL INSURANCE COMPANIES (OTHER T H A N L I T E, ETC.) —

(1) Subsection (a) of section 821 (relating to imposition of tax) is amended to read as follows: " (a) IMPOSITION or TAX.—A tax is hereby imposed for each taxable year beginning after December 31, 1963, on the mutual insurance company taxable income of every mutual insurance company (other than a life insurance company and other than a fire, flood, or marine insurance company subject to the tax imposed by section 831). Such tax shall consist of—

Je use'6074

76 Stat. 989. 26 USC 821.

'^ "^^ ^^'•

" (1) NORMAL TAX.—A normal tax of 22 percent of the mutual

insurance company taxable income, or 44 percent of the amount by which such taxable income exceeds $6,000, whichever is the lesser; plus "(2) SURTAX.—A surtax on the mutual insurance company p 25. taxable income computed as provided in section 11(c) as though Ante, s e. U. 26 u the mutual insurance company taxable income were the taxable income referred to in section 11(c)." (2) Paragraph (1) of section 821(c) (relating to alternative tax for certain small companies) is amended to read as follows: "(1) IMPOSITION or TAX.—In the case of taxable years beginning after December 31, 1963, there is hereby imposed for each taxable year on the income of each mutual insurance company to which this subsection applies a tax (which shall be in lieu of the tax imposed by subsection (a)) computed as follows: " (A) NORMAL TAX.—A normal tax of 22 percent of the

taxable investment income, or 44 percent of the amount by which such taxable income exceeds $3,000, whichever is the lesser; plus " (B) SURTAX.—A suitax on the taxable investment income computed as provided in section 11(c) as though the taxable investment income were the taxable income referred to in section 11(c)." (b) RECEIPT

OF MINIMUM

DISTRIBUTIONS

BY DOMESTIC

COR-

PORATIONS.—Subsection (b) of section 963 (relating to receipt of minimum distributions by domestic corporations) is amended to read as follows: " (b) MINIMUM DISTRIBUTION.—For purposes of this section, a minimum distribution with respect to the earnings and profits for the taxable year of any controlled foreign corporation or corporations shall, in the case of any Ignited Slates shareholder, be its

26 USC 9^63^.^'

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 30

PUBLIC LAW 88-272-FEB. 26, 1964

[78 STAT.

p r o rata s h a r e of a n a m o u n t determined in a c c o i d a u c e with whichever of the following tables a p p l i e s to the tax a b l e year: " ( 1)

T A X A B L E Y K A R S BKOlX X IX( J rX' 1 »(i. i, —

"If the effective foreign tax rate is (percentage)— Under 10 10 or over but less than 20 20 or over but less than 28 28 or over but less than 34 34 or over but less than 39 39 or over but less than 42 42 or over but less than 44 44 or over but less than 46 46 or over but less than 47 47 or over

The required minimum distribution of earnings and profits is (percentage)— 90 86 82 75 68 55 40 27 14 0

' ' (2) TAXABLE YEAUs BK(ixxix<; IX' TJHU.—

"If the effective foreign tax rate is (percentage)— ruder 10 10 or over but less than 19 19 or over but less than 27 27 or over but less than 33 33 or over but less than 37 .37 or over but less than 40 40 or over but less than 42 42 or over but less than 44 44 or over but less than 45 45 or over "(8)

68A Stat. 72. 26 USC 242.

The required minimum distribution of earnings and profits is (percentage)— 87 83 79 72 65 53 38 26 13 0

T A X A B L E YEARS BE(JIXXIX<; AKTKK DECEMBER; n.

iixu.—

The required minimum dis"If the effective foreign tax tribution of earnings and rate is (percentage)— profits is (percentage)— Under 9 S3 9 or over but less than 18 79 18 or over but less than 26 76 26 or over but less than 32 69 32 or over but less than 36 63 36 or over but less than 39 51 .39 or over but less than 41 37 41 or over but less than 42 25 42 or over but less than 43 13 43 or over 0" (c) Ai\rENi)MEXT OF SECTIOX' 242.—Section 2 4 2 (a) ( r e l a t i n g to deduction for partial l y tax - e x e m p t interest) is amended by a d d i n g at the e n d thereof the following new s e n t e n c e: " N o deduction shall be allowed under t h i s section foi- purposes of any s u r tax imposed by t h i s subtitle."

PART III—EFFECTIVE DATES 26 USC 21.

SEC. 131. (iENERAL RULE. E x c e p t for purposes of section 21 of the I n t e r n a l Revenue Code of 1054 ( r e h i t i n g to effect of changes hi r a t e s during a ta xa ble year), the amendments m a d e by part s I and II of t h i s title shall rtpply with respect to tax a b l e year s b e g i n n i n g after December 31, 1963. SEC. 132. FISCAL YEAR TAXPAYERS. Effective with respect to taxable year s e n d i n g after Decemlier 3 1, 10(53, subsection (d) of section 21 ( r e l a t i n g to effect of changes in rates t l u r i n g a taxable vein) is amended to read a s follows:

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 78 STAT. ]

PUBLIC LAW 88-272-FEB. 26, 1964

31

'* (d) CHANGES MADE BY REVENUE ACT OF 1964.— "(1) INDIVIDUALS.—In applying subsection (a) to the taxable year of an individual beginning in 1963 and ending in 1964— " (A) the rate of tax for the period on and after January 1, 1964, shall be applied to the taxable income determined as if part IV of subchapter B (relating to standard deduction for individuals), as amended by the Revenue Act of 1964, applied to taxable years ending after December 31, 1963, and 68A Stat. " (B) section 4 (relating to rules for optional tax), as post, pp. I l 10; 140. l, amended by such Act, shall be applied to taxable years " 26 'use 4 ending after December 31, 1963. I n applying subsection (a) to a taxable year of an individual beginning in 1963 and ending in 1964, or beginning in 1964 and ending in 1965, the change in the tax imposed under section 3 shall be treated as a change in a rate of tax. 5 USC'3!^^ "(2) CORPORATIONS.—In applj^in^ subsection (a) to a taxable year of a corporation beginning in 1963 and ending in 1964, if— " (A) the surtax exemption of such corporation for such taxable year is less than $25,000 by reason of the application of section 1561 (relating to surtax exemptions ^°sP- ii^ in case of certain controlled corporations), or " (B) an additional tax is imposed on the taxable income of such corporation for such taxable year by section 1562(b) (relathig to additional tax in case of component ^°«P- "7 members of controlled groups which elect multiple surtax exemptions), the change in the surtax exemption, or the imposition of such additional tax, shall be treated as a change in a rate of tax taking effect on January 1, 1964."

Title II—Structural Changes SEC. 201. DIVIDENDS RECEIVED BY INDIVIDUALS. (a)

REDUCTION OF 4 PERCENT CREDIT TO 2 PERCENT CREDIT FOR

('Ar.ENDAR YEAR 1964.— (1) GP:NERAL RULE.—Section 34(a) (relating to general rule for credit for dividends received) is amended by striking out "an amount equal to 4 percent of the dividends which are received after July 31, 1954, from domestic corporations and are included in gross income" and inserting in lieu thereof: "an amount equal to the following percentage of the dividends which lire received from domestic corporations and are included in gi*oss iiK'ome:

"(1) 4 percent of the amount of such dividends which are received before January 1, 1964, and "(2) 2 percent of the amount of such dividends which are received during the calendar year 1964." (2) LIMITATIONS.—Section 34(b)(2) (relating to limitations on amount of credit) is amended— (A) by inserting ", or beginning after December 31, 1963" after "1955" at the end of subparagraph (A), and (B) by inserting ", and beginning before January 1, 1964" after "1954" at the end of subparagraph (B). (b)

REPEAL OF CREDIT FOR DIVIDENDS RECEIVED BY INDIVIDUALS.—

Effective with respect to dividends received after December 31, 1964,

26 USC 34.

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Page:United States Statutes at Large Volume 78.djvu/74

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PUBLIC LAW 88-272-FEB. 26, 1964

7 8 STAT.

section 34 (relating to dividends received by individuals) is hereby repealed. (c) DOUBLING OV AMOUNT OF PARTIAL EXCLUSION FROM GROSS INCOME OF DIVIDENDS RECEIVED BY INDIVIDUALS.—Section 116(a)

68A Stat. 37. 26 USC 116.

(relating to partial exclusion from gross income of dividends received by individuals) is amended by striking out "$50" each place it appears and inserting in lieu thereof "$100". (d)

CONFORMING AMENDMENTS.—

(1) The table of sections for subpart A of part IV of subchapter A of chapter 1 is amended by striking out "Sec. 34. Dividends received by individuals." 26 USC 35.

(2) Section 35(b)(1) is amended by striking out "the sum of the credits allowable under sections 33 and 34" and inserting in lieu thereof "the credit allowable under section 33". (3) Section 37(a) is amended by striking out "section 34 (relating to credit for dividends received by individuals),". (4) Section 46(a)(3) is amended by striking out subparagraph (B), and by redesignating subparagraphs (C) and (D) as " (B) " and " (C) ", respectively. (5) Section 584(c)(2) is amended by striking out "section 34 or". (6)(A) Section 642(a) is amended by striking out paragraph (3); (B) Section 642(i) is amended to read as follows:

Ante, p. 24. 26 USC 37. 76 Stat. 963. 26 USC 46. 26 USC 584. 26 USC 642.

"(i) 26 USC 142. 26 USC 652, 662.

26 USC 702. 26 USC 854.

74 Stat. 1008. 26 USC 857.

72 Stat. 1639. 26 USC 871. 26 USC 1375. 26 USC 6014.

CROSS REFERENCES.— "(1) For disallowance of standard deduction in case of estates and trusts, see section 142(b)(4). "(2) For special rule for determining the time of receipt of dividends by a beneficiary under section 652 or 662, see section 116(c)(3)."

(C) Section 116(c) is amended by adding at the end thereof the following new paragraph: "(3) The amount of dividends properly allocable to a beneficiary under section 652 or 662 shall be deemed to have been received by the beneficiary ratably on the same date that the dividends were received by the estate or trust." (7) Section 702(a)(5) is amended by striking out "a credit under section 34," and the comma after "section 116". (8) Section 854(a) is amended by striking out "section 34(a) (relating to credit for dividends received by individuals)," and the comma after "section 116 (relating to an exclusion for dividends received by individuals)". (9) Section 854(b)(1) is amended by striking out "the credit under section 34(a)," and the comma after "section 116". (10) Section 854(b)(2) is amended by striking out "the credit under section 34," and the comma after "section 116". (11) Section 857(c) is amended by striking out "section 34(a) (relating to credit for dividends received by individuals)," and the comma after "section 116 (relating to an exclusion for dividends received by individuals)". (12) Section 871(b) is amended by striking out "the sum of the credits under sections 34 and 35" and inserting in lieu thereof "the credit under section 35". (13) Section 1375(b) is amended by striking out "section 34," and the comma after "section 37". (14) Section 6014(a) is amended py striking out "34 or". (e) EFFECTIVE DATES.—The amendments made by subsection (a) shall apply with respect to taxable years ending after December 31, 11H>3. The amendment made by subsection (b) shall apply with

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Page:United States Statutes at Large Volume 78.djvu/75

 78 STAT.]

PUBLIC LAW 8 8 - 2 7 2 - F E B. 26, 1964

33

respect to taxable years ending after December 31, 1904. The amendment made by subsection (c) shall apply with respect to taxable years beginning after December 31, 1963. The amendments made by subsection (d) shall apply with respect to dividends received after December?!d, 1964, in taxable years ending after such date. SEC. 202. RETIREMENT INCOME CREDIT OF CERTAIN MARRIED INDIVIDUALS. (a) DETERMINATION OF RETIREMENT INCOME.—Section 37 (relating

to retirement income) is amended by redesignating subsection (i) as subsection (j) and by inserting after subsection (h) the following new subsection:

68A Stat. 15. 26 USC 37.

" (i) SPECIAL RULES FOR CERTAIN MARRIED COUPLES.—

"(1) ELECTION.—A husband and wife who make a joint return for the taxable year and both of whom have attained the age> of 65 before the close of the taxable year may elect (at such time and in such manner as the Secretary or his delegate by regulations prescribes) to determine the amount of the credit allowed by subsection (a) by applying the provisions of paragraph (2). "(2) SPECIAL RULES.—If an election is made under paragraph (1) for the taxable year, for purposes of subsection (a) — " (A) if either spouse is an individual who has received earned income within the meaning of subsection (b), the othei* spouse shall be considered to be an individual who has received earned income within the metining of such subsection; and " (B) subsection (d) shall be considered as providing that the amount of the combined retirement income of both spouses shall not exceed $2,286, less the sum of the amounts specified in paragraphs (1) and (2) of subsection (d) for each spouse." (b) EFFECTIVE DATE.—The amendments made by subsection (a) shall apply to taxable years beginning after December 31, 1963. SEC. 203. REPEAL OF REQUIREMENT THAT BASIS OF SECTION 38 PROPERTY BE REDUCED BY 7 PERCENT; OTHER PROVISIONS RELATING TO INVESTMENT CREDIT. (a) REPEAL OF REQUIREMENT THAT BASIS BE REDICBD.—

(1) IN GENERAL.—Subsection (g) of section 48 (requiring that the basis of section 38 property be reduced by 7 percent of the qualified investment) is hereby repealed.

26 USC 48^'' 26 USC as!

(2) INCREASE I N BASIS OF PROPERTY PLACED I N SERVICE BEFORE JANUARY 1, 1964. —

(A) The basis of any section 38 property (as defined in section 48(a) of the Internal Revenue Oode of 1954) placed in service l>efre January 1, 1964, shall be increased, under regulations prescrited by the Secretary of the Treasury or his delegate, by an amount equal to 7 percent of the qualified inA-estment with respect to such property under section 46(c) of the Internal Revenue Code of 1954. If there has been any increase with respect to such property under section 48(g)(2) of such Code, the increase under the pi'eceding sentence shall be appropriately reduced therefor. (B) If a lessor made the election proAdded by section 48(d) of ihe Internal Revenue Code of 1954 with respect to property placed in service before January 1, 1964— (i) subparagraph (A) shall not apply with respect to su<*h property, but

^^ "^^ '*^'

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Page:United States Statutes at Large Volume 78.djvu/76

 34

PUBLIC LAW 88-272-FEB. 26, 1964

(ii) iiiuler regulations prescribe(l by the Secretary of the Treasury or his delegate, the deductions otherwise allowable under section lfi2 of such Code to the lessee ^^^ amounts paid to the lessor under the lease (or, if such lessee has purchased such property, the basis of such property) shall be adjusted in a manner consistent with subparagraph (A). / (C) The adjustments under this paragraph shall be made as of the first day of the taxpayer's first taxable year which begins after December 31, 1963.

68A Stat. 45. 26 USC 162.

(3)

76 Stat. 967. ^^ " '^^' 26 USC 181. 26 USC 1016.

[78 STAT.

CONFORMING AMENDMENTS.—

^^\ The last senteuce of section 48(d) (relating to certain leased property) is hereby repealed. (B) Section 181 (relating to deduction for certain unused investment credit) is hereby repealed. (C) Section 1016(a) (19) (relating to adjustments to basis) is amended to read as follows: •'(19) to the extent provided in section 48(g) and in section 203(a)(2) of the Revenue Act of 1964, in the case of property which is or has been section 38 property (as defined in section 48(a));" (D) The table of sections for part VI of subchapter B of chapter 1 is amended by striking out the following: "Sec. 181. Deduction for certain nnnsed investment credit."

(4) EFFECTIVE DATE.—Paragraphs (1) and (3) of this subsection shall apply— (A) m the case of property placed in ser\-ice after December 31, 1963, with respect to taxable years ending after such date, and (B) in the case of property placed in service before January 1, 1964, with respect to taxable years beginning after December 31, 1963. (b)

26 USC 46.

BASIS or CERTAIN LEASED PROPERTY TO LESSEE.—Paragraphs

(1) and (2) of section 48(d) (relating to certain leased property) are amended to read as follows: " (1) except as provided in paragraph (2), the fair market \'alue of such property, or "(2) if such property is leased by a corporation which is a member of an afRliated group (within the meaning of section 46(a)(5)) to another corporation which is a member of the same affiliated group, the basis of such prperty to the lessor," (c) TREATMENT OF ELEVATORS AND ESCALATORS FOR PURPOSES OF

26 USC 48, 38.

piiE INVESTMENT CREDIT.—Section 4 8 (a)(1) (relating to section 3S property) is amended— (1) by striking out the period at the end of subparagraph (B) and inserting in lieu thereof ", or"; and (2) by adding after subparagraph (B) the following new subparagraph: " (C) elevators and escalators, but only if— " (i) the construction, reconstruction, or erection of the elevator or escalator is completed by the taxpaver after June 30, 1063, or "(ii) the elevator or escalator is accjuired after June 30, 1963, and the original use of such elevator or escalator commences with the taxpayer and commences after such date."

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 78 STAT. ]

PUBLIC LAW 88-272-FEB. 26, 1964

(d) T K K A T M EXT OF Kl-EVATCMiS AX1> ESCALATOKS If ]{ PlUrOSKS OF SKCTIOX 1*245.—Section I'i+afii) (relntino- to «rini\ from dispositions

of certain depreciahle property) is amended— (1) by striking- out so much of paragraph (2) as precedes the second sentence thereof and inserting in lieu thereof the following: "(2) RECo^rPITTED BASIS,—Foi" purposes of this section, the term 'recomputed basis' means— " (A) with respect to any property referred to in paragraph (3)(A) or (B), its adjusted basis recomputed by adding thereto all adjustments, attributable to periods after December 31, 1961, or " (B) with respect to any property referred to in paragraph (3)(C), its adjusted basis recomputed by adding thereto all adjustments, attributable to periods after June 30, 1963, reflected in such adjusted basis on account of deductions (whether in respect of the same or other property) allowed or allowable to the taxpayer or to any other person for depreciation, or for amortization under section 168,"; (2) by striking out the period at the end of paragraph (3)(B) and inserting in lieu thereof ", or"; and (3) by adding at the end of paragraph (3) the following new subparagraph: " (C) an elevator or an escalator," (e) TREATMENT OF lNA'EsT:\rENT Cincnrr RY FEDERAL REOFLATORY A(tEX(TES.—It was the intent of the Congress in providhig an investment credit under section 38 of the Internal Revenue Code of 1954, and it is the intent of the Congress in repealing the reduction in basis required by section 48(g) of such Code, to provide an incentive for modernization and growth of private industry (including that portion thereof which is regulated). Accordingly, Congress does not intend that any agency or instrumentality of the United States having jurisdiction with respect to a taxpayer shall, without the consent of the taxpayer, use— (1) in the case of ]nd)lic utility property (as defined in section 46(c)(3)(B) f the Internal Revenue Code of 1954), more than a proportionate part (determined with i*eference to the average useful life of the property with respect to which the credit was allowed) of the credit against tax allowed for any taxable year by section 38 of such Code, or (2) in the case of any other property, any credit against tax allowed by section 38 of such Code. fo reduce such taxpayer's Federal income taxes for the purpose of establishing the cost of service of the taxpayer or to accomplish a similar result by anj- other method. (f) EFFECTIVE DATES.—

(1) The amendments made by subsection (b) shall apply with respect to i^roperty possession of which is transferred to a lessee on or after the date of enactment of this Act. (2) The amendments made by subsection (c) shall appl^- with respect to taxable years ending after June 30, 1963. (3) The amendments made by subsection (d) shall apply with respect to dispositions after December 31, 1963, in taxable years en d i n g after such date.

35 26 USC 1^245^.'

68A Stat. 52. 26 USC 168.

76 Stat. 962. 26 USC 38,

In(e, p."33

26 USC 46.

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Page:United States Statutes at Large Volume 78.djvu/78

 36

PUBLIC LAW 88-272-FEB. 26, 1964 SEC. 204. GROUP-TERM LIFE PLOYEES. (a)

76^stlt^*iooi^' 26 USC 71-78.

72 Stat. 1613. 26 USC 213.

26 USC 170.

26 USC 72^^' Post, p. 37.

INSURANCE

[78 STAT.

PURCHASED FOR EM-

INCLUSION IN INCOME.—

(1) Part II of subchapter B of chapter 1 (relating to items specifically included in gross income) is amended by adding at the end thereof the following new section: "SEC. 79. GROUP-TERM LIFE INSURANCE PURCHASED FOR EMPLOYEES. " (a) GENERAL RULE.—There shall be included in the gross income of an employee for the taxable year an amount equal to the cost of group-term life insurance on his life provided for part or all of such year under a policy (or policies) carried directly or indirectly by his employer (or employers); but only to the extent that such cost exceeds the sum of— " (1) the cost of $50,000 of such insurance, and "(2) the amount (if any) paid by the employee toward the purchase of such insurance. "(b) EXCEPTIONS.—Subsection (a) shall not apply to— "(1) the cost of group-term life insurance on the life of an individual which is provided under a policy carried directly or indirectly by an employer after such individual has terminated his employment with such employer and either has reached the retirement age with respect to such employer or is disabled (within the meaning of paragraph (3) of section 213(g), determined without regard to paragraph (4) thereof), "(2) the cost of any portion of the group-term life insurance on the life of an employee provided during part or all of the taxable year of the employee under which— " (A) the employer is directly or indirectly the beneficiary, or " (B) a person described in section 170(c) is the sole beneficiary, for the entire period during such taxable year for which the employee receives such insurance, and "(3) the cost of any group-term life insurance which is provided under a contract to which section 72(m)(3) applies. "(c) DEI'ERMINATION OF COST OF INSURANCE.—For purposes of this se(ition and section 6052, the cost of group-term insurance on the life of an employee provided during any period shall be determined on the basis of uniform premiums (computed on the basis of 5-year age brackets) prescribed by regulations by the Secretary or his delegate. In the case of an employee who has attained age 64, the cost prescribed shall not exceed the cost with respect to such individual if he were age 63." (2) The table of sections for part II of subchapter B of chapter 1 is amended by adding at the end thereof the following: "Sec. 79. Group-term life insurance purchasecl for employees."

26 USC 7701. 26 USC 104.

6/Stat.'6i6'^' 75 Stat! 626.' 26 USC 3401.

(|) Section 7701(a) (20) (defining employee) is amended by striking out "For the purpose of applying the provisions of sections 104'' and inserting in lieu thereof "For the purpose of applying the provisions ot section 79 with respect to group-tenn life insurance purchased for employees, for the purpose of applying the provisions of sections 104". ^*') WITHHOLDING.—Section 3401(a) (relating to definition of wages) is amended by striking out the period at the end of paragraph ^j3^.jj^j inserting in lieu thereof "; or'', and by adding at the end thereof the following new paragraph: " (14) in the form of group-term life insurance on the life of an employee; or".

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 78 STAT;]

PUBLIC LAW 88-272-FEB. 26, 1964

37

(c) INFORMATION Ep:roR'nNG.—

(1) REQIIKEMENT.—Subpart C of part 111 of subchapter A of oliapter (U (relating? to inforniation and returns) is amended by adding at the end thereof the following new section: "SEC. 6052. RETURNS REGARDING PAYMENT OF WAGES IN THE FORM OF GROUP-TERM LIFE INSURANCE. "(a)

26 us^c^eosl!'

REQUIREMENT OF REPORTING.—Every employer who during

any calendar year provides group-term life insurance on the life of an employee during part or all of such calendar year \mder a policy (or policies) carried directly or indirectly by such employer shall make a return according to the forms or regulations prescribed by the Secretary or his delegate, setting forth the cost of such insurance and the name and address of the employee on whose life such insurance is provided, but only to the extent that the cost of such insurance is includible in the employee's gross income under section 7&(a). For purposes of this section, the extent to which the cost of group-term life insurance is includible in the employee's gross income under section 79(a) shall be determined as if the employer were the only employer paying such employee renunieration in the form of such insurance.

^"P-36.

" (b) STATEMENTS TO B E FURNISUP^) TO EMPLOYEES W I J II RESPECT ro W H O M INFORMATION I S FURNISHED.—Every employer making a

return under subsection (a) shall furnish to each employee whose name' is set forth in such return a written statement showing the cost of the group-term life insurance shown on such return. The written statement required under the preceding sentence shall be furnished to the employee on or before January 81 of the year following the calendar year for which the return under subsection (a) was made." (2) PENALTIES FOR FAILURE TO FURNISH STATEMENTS TO PERSONS WITH RESPECT TO WHOM RETLTiNS ARE F I L E D. — S e c t i o n (i78 ( I ' e l a t - post^p.^y's!"^^'

ing to failure to furnish certain statements) is amended— (A) by striking out "or (5049(c)" and inserting in lieu thereof "6049(c), or 60.52(b)"; and (B) by striking out "or 6049(a)(1).*' and inseiting in lieu thereof "6049(a)(J), or 6052(a),". (8) CLERICAL AMENDMENT.—The table of sections for subpart ('of part 111 of subchapter A of chapter 61 is amended by adding at the end thereof the following: "Sec. 6.")2. Returns regarding payment of wajres in the form of group-term life insurance."

26 USC 6678. 26 USC 6049.

(4) CROSS REFERENCE.—

For penalty for failure to file information returns required by section 6052(a) of the Internal Revenue Code of 1954 (added by paragraph (1) of this subsection), see section 6652(a)(3) of such Code (as amended by section 221(b)(2) of this Act). (d) EFFEcriVE DATES.—The amendments made by subsections (a) and (c), and paragraph (8) of section 66o2(a) of the Internal Revenue Code of 19.54 (as amended by secti(m 221(b)(2) of this Act), ^ ° « ' ' P - '^^^ shall apply with respect to group-term life insurance pro\ided after December 81, 1968, in taxable years ending after such date. The amendments made by sul>section (b) shall apply with respect to remuneration paid after December 81, 1968. in the form of grouplerm life insurance proxided after such date. In applying section 79(b) of the Internal Revenue (xnle of 1954 (as added by subsection (a)(1) of this section) to a taxable year beginning before May 1, ^rxte, v 36. 1964. if jiaragraph (2)(B) of such section applies with respect to an j^niployee for the period beginning May 1. 1964, and ending with the dose of his first taxable year endnig after April 80, 1964, such paragraph (2)(B) shall be treated as applying with respect to such

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Page:United States Statutes at Large Volume 78.djvu/80

 38

PUBLIC LAW 88-27 2-FEB. 26, 1964

[78 STAT.

employee for the period beginning January 1, 1964, and ending April 80, 1964. SEC. 205. AMOUNTS RECEIVED UNDER WAGE CONTINUATION PLANS. (a) WAGE CONTINUATION PLANS.—The second sentence of sec-

^8^ |tat,^3o. 26 Ttcr- 105. o« u s e in.:

f JQjj 105(d) (relating to wage continuation plans) is amended to read ^^ follows: "The preceding sentence shall not apply to amounts attributable to the first 30 calendar days in such period, if such amounts are at a rate which exceeds 75 percent of the regular weekly rate of wages of the employee (as determined under regulations prescribed by the Secretary or his delegate). I f amounts attributable to the first 80 calendar days in such period are at a rate which does not exceed 75 percent of the regular weekly rate of wages of the employee, the first sentence of this subsection (1) shall not apply to the extent that such amounts exceed a weekly rate of $75, and (2) shall not apply to amounts attributable to the first 7 calendar days in such period unless t he employee is hospitalized on account of personal injuries or sickness for at least one day during such period." (b) EFFECTIVE DATE.—The amendment made by subsection (a) shall apply to amounts attributable to periods of absence commencing after December 31, 1963. SEC. 206. EXCLUSION FROM GROSS INCOME OF GAIN ON SALE OR EXCHANGE OF RESIDENCE OF INDIVIDUAL WHO HAS ATTAINED AGE 65. 26 USC 101-121. (a) IN GENERAL.—Part III of subchapter B of chapter 1 (relating to items specifically excluded from gross income) is amended by redesignating section 121 as section 122 and by inserting before such section the lollowing new section: "SEC. 121. GAIN FROM SALE OR EXCHANGE OF RESIDENCE OF INDIVIDUAL WHO HAS ATTAINED AGE 65. " (a) GENERAL RULE. — A t the election of the taxpayer, gross income does not include gain from the sale or exchange of property if— "(1) the taxpayer has attained the age of 65 before the date of such sale or exchange, and "(2) during the 8-year period ending on the date of the sale or exchange, such property has been owned and used by the taxpayer as his principal residence for periods aggregating 5 years or more. " (b) LIMITATIONS.— "(1) W H E R E ADJUSTED SALES PRICE EXCEEDS

26 USC 1034.

$20,000.—If the adjusted sales price of the property sold or exchanged exceeds $20,000, subsection (a) shall apply to that portion of the gain which bears the same ratio to the total amount of such gain as $20,000 bears to such adjusted sales price. For purposes of Uie preceding sentence, the term 'adjusted sales price' has the meaning assigned to such term by section 1034(b)(1) (determined without regard to subsection (d)(7) of this section). " (2) APPLICATION TO ONLY ONE SALE OR EXCHANGE.—Sub-

section (a) shall not apply to any sale or exchange by the taxpayer if an election by the taxpayer or his spouse under subsection (a) with respect to any other sale or exchange is in effect. "(c) ELT^.CTION.—An election under subsection (a) may be made or revoked at any time before the expiration of the period for making a claim for credit or refund of the tax imposed by this chapter for the taxable year in which the sale or exchange occurred, and shall be made or I'evoked in such manner as the Secretary or his delegate shall by regulations pi'escribe. I n the case of a taxpayer who is married, an election under subsection (a) or a revocation (hereof may be made only if his s^wuse joins in such election or revocation.

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Page:United States Statutes at Large Volume 78.djvu/81

 78 STAT. ] "(d)

PUBLIC LAW 88-272-FEB. 26, 1964

SPECIAL RULES.— "(1) PROPERTY HELD JOINTLY BY HUSBAND AND WIFE.—For

purposes of this section, if— " (A) property is held by a husband and wife as joint tenants, tenants by the entirety, or community property, " (B) such husband and wife make a joint return under Stat. 733. section 6013 for the taxable year of the sale or exchange, and 68Au s e 6013. 26 " (C) one spouse satisfies the age, holding, and use requirements of subsection (a) with respect to such property, then both husband and wife shall be treated as satisfying the age, holding, and use requirements of subsection (a) with respect to such property. " (2) PROPERTY OF DECEASED SPOUSE.—For purposes of this section, in the case of an unmarried individual whose spouse is deceased on the date of the sale or exchange of property, if— " (A) the deceased spouse (during the 8-year period ending on the date of the sale or exchange) satisfied the holding and use requirements of subsection (a)(2) with respect to such property, and " (B) no election by the deceased spouse undei- subsection (a) is in effect with respect to a prior sale or exchange, then such individual shall be treated as satisfying the holding and use requirements of subsection (a)(2) with resjx'ct to suclv property. "(3) TENANT-STC)€KI10IJ)ER I N (OOPEKATIM-: Hl81N(5^ CORPORATION.—For purposes of this section, if the taxpayer holds stock as a tenant-stockholder (as defined in section 216) in a coopera- 26 USC 216. tive housing corporation (as defined in such section), then— " (A) the holding requirements of subsection (a)(2) shall be applied to the holding of such stock, and " (B) the use requirements of subsection (a)(2) shall be applied to the house or apartment which the taxpayer was entitled to occupy as such stockholder. "(4) INVOLI'NTARY CONVERSIONS.—F"r purposes of this section. the destruction, theft, seizure, reijuisition, or condemnation of property shall be treated as the sale of such property. "(5) PROPERI'Y USED IN PART AS PRINCIPAL RESIDENCE.—Tu the case of property only a portion of which, during the 8-year period ending on the date of the sale or exchange, has been owned and used by the taxpayer as his principal residence for periods aggregating 5 years or more, this section shall appl3' with respect to so much of the gain from the sale or exchange of such property as is e made as of the date of the sale or exchange: and " (B) an individual legally separated from his spouse under a decree of div^orce oi- of separate maintenance shall not be considered as married. "(7) APPLICATION OF SECTIONS loaa AND JO.U.—In applying sections 1033 (relating to involuntary conversions) and 1034 1034.^^*^ ^ ° " ' (relating to sale or exchange of residence), the amount realized from the sale or exchange of property shall be treated as behig the amount determined without leyfard to this section, reduced by 31-667 0-65—6

39

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Page:United States Statutes at Large Volume 78.djvu/82

 40

PUBLIC LAW 8 8 - 2 7 2 - F E B. 26, 1964

[78 STAT.

the a m o u n t of g a i n not included in <2:ro«s income piirsnant to a n election under t h i s section.'" (1)) T K C II N I C A L Axn CI^ERICAL A. M K X D M K X T S. —

26 us^c 60^^°*

^^^ Section H12(c) ( r e l a t i n g to persons r e q u i r e d to m a k e r e t u r n s of income) is amended to read a s f o l l o w s: "(c)

Ante, p. 38. 26 us^c 91°°^

CERTAIN I N C O M E E A R N E D ABROAD OR F R O M

SALE OF RESI-

D E N C E. — For purposes of this section, g r o s s income shall be c o m p u t e d withoiit r e g a r d to the exclusion provided for in section 121 ( r e l a t i n g (o sale of residence by i n d i v i d u a l w h o has a t t a i n e d a g e 65) and w i t h o u t r e g a r d to the exclusion provided for in section 911 ( r e l a t i n g to ea r n e d income from sources w i t h o u t the United States). " (2) The t a b l e of sections for part III of subchapter B of chapter 1 is amended by striking out "Sec. 121. Cross references to other Acts."

26 USC 1033.

26 USC 1034.

and inserting i n lieu thereof "Sec. 121. Gain from sale or exchange of residence of inrtiviilual who has attained age 65. "Sec. 122. Cross references to other Acts." ^3^ Section 1 0 3 3 (h) ( r e l a t i n g to i n voluntary conversions) i s amended by a d d i n g a t the e n d thereof the following n e w paragraph: "(3) For exclusion from gross income of certain gain from involuntary conversion of residence of taxpayer who has attained age 65, see section 121." (^^^ Section 1034 ( r e l a t i n g to sale o r e x c h a n g e of residence) is amended by a d d i n g a t the e n d thereof the following n e w subsection: "(k)

CROSS R E F E R E N C E. —

"For exclusion from gross income of certain gain from sale or exchange of residence of taxpayer who has attained age 65, see section 121."

Il\ilc\e4'

26 USC 212.

(c) EFFECTIVE D A T E. — The amendments m a d e by t h i s section shall after such date. SEC. 207. DENIAL OF DEDUCTION FOR CERTAIN STATE, LOCAL, ANI FOREIGN TAXES. i^) I^' GENERAL.—Subsections (a), (b), and (c) of section 164 (relating to deduction for taxes) are amended to reacl as follows: " (a) GENERAL RULE.—Except as otherwise provided in this section, the following taxes shall be allowed as a deduction for the taxable year within which paid or accrued: " (1) State and local, and foreign, real property taxes. "(2) State and local personal property taxes. "(3) State and local, and foreign, income, war profits, and excess profits taxes. "(4) State and local general sales taxes. "(5) State and local taxes on the sale of gasoline, diesel fuel, and other motor fuels. In addition, there shall be allowed as a deduction State and local, and foreign, taxes not described in the ]>receding sentence which are paid or accrued within the taxable year in carrying on a trade or business or an activity described in section 212 (relating to expenses for production of income). "(b)
 * ipply to dispositions after December 31, 1063, i n tax a b l e year s endin|»

DEFINITIONS AND SPECIAL RULES.—For purposes of

this

section— "(1) PERSONAL I»ROPEKTY TAXES.—The term 'personal property

tax" means an ad valorem tax which is imposed on an annual basis in respect of personal property.

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Page:United States Statutes at Large Volume 78.djvu/83

 78 STAT. ] "(2)

PUBLIC LAW 88-272-FEB. 26, 1964

41

G E N E R A I. SALES TAXES.—

" (A) IN GENERAL.—The term 'general sales tax ' means a tax imposed at one rate in respect of the sale at retail of a broad range of classes of items. " (B) SPECIAL RULES FOR FOOD, ETC.—In the case of items of food, clothing, medical supplies, and motor vehicles— "(i) the fact that the tax does not apply in respect of some or all of such items shall not be taken into account in determining whether the tax applies in respect of a broad range of classes of items, and "(ii) the fact that the rate of tax applicable in respect of some or all of such items is lower than the general rate of tax shall not be taken into account in determining whether the tax is imposed at one rate. " (C) ITEMS TAXED AT DIFFERENT RATES.—Except in the

case of a lower rate of tax applicable in respect of an item described in subparagraph (B), no deduction shall be allowed under this section for any general sales tax imposed in respect of an item at a rate other than the general rate of tax. " (D) COMPENSZ^TING "USE TAXES.—A compensating use tax in respect of an item shall be treated as a general sales tax. For purposes of the preceding sentence, the term 'compensating use tax' means, in respect of any item, a tax which— "(i) is imposed on the use, storage, or consumption of such item, and " (ii) is complementary to a general sales tax, but onlj' if a deduction is allowable under subsection (a)(4) in respect of items sold at retail in the taxing jurisdiction which are similar to such item. " (3) STATE OR LOCAL TAXES.—A State or local tax includes only a tax imposed by a State, a possession of the United States, or a political subdivision of any of the foregoing, or by the District of Columbia. "(4) FOREIGN TAXES.—A foreign tax includes only a tax imposed by the authority of a foreign countiy. " (5) SEPARATELY STATED GENERAL SALES TAXES AND GASOLINE

TAXES.—If the amount of any general sales tax or of any tax on the sale of gasoline, diesel fuel, or other motor fuel is separately stated, then, to the extent that the amount so stated is paid by (he consumer (otherwise than in connection with the consumer's trade or business) to his seller, such amount shall be treated as a tax imposed on, and paid by, such consumer. " (c) DEDUCTION DENIED IN CASE OF CERTAIN TAXES.—No deduction

si I nil be allowed for the following taxes: " (1) Taxes assessed against local benefits of a kind tending to iiK-rease the vdlne of the property assessed; but this paragraph shall not pi-event the deduction of so much of such taxes as is properly allocable to maintenance or interest charges. "(2) Taxes on real property, to the extent that subsection (d) requires such taxes to be treated as imposed on another taxpayer.'' (b) TECHNICAL AMENDMENTS.—

(1) The first sentence of section 164(f) (relating to payments ' ^^ sta^ leos. for iimiilcipal services in atomic energy communities) is amended by inserting "Stale" before "real property taxes".

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Page talk:The Mathematical Principles of Natural Philosophy - 1729 - Volume 2.djvu/20

The word "phenomena" is spelled differently in the original. The lettes "a" and "e" are contracted to a single letter. Presumably some template is necessary for that.

I use Firefox 3.6.17 According to the proofread help page http://en.wikisource.org/wiki/H:SIDE There should be a toggle button for access to the header and footer fields. Unfortunately that toggle button is not present in my browser, so I have no access to the header and footer fields. Cleonis | Talk 23:27, 27 May 2011 (UTC)

✅ Beeswaxcandle (talk) 23:54, 27 May 2011 (UTC)


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Page:United States Statutes at Large Volume 78.djvu/84

 42 72^sttt!*i608^' 26 USC 164.

PUBLIC LAW 88-272-FEB. 26, 1964

[78 STAT.

(2) Section 164(g) (relating to cross references) is ninendetl to read as follows: "(g)

CROSS REFERENCES.—

"(1) For provisions disallowing any deduction for the payment of the tax imposed by subchapter B of chapter 3 (relating to taxfree covenant bonds), see section 1451. "(2) For provisions disallowing any deduction for certain taxes, see section 275." 26 USC 261-274. (3) ( ^) p^^.^ j x of Subchapter B of chapter 1 (relating to items not deductible) is amended by adding at the end thereof the following new section: "SEC. 275. CERTAIN TAXES. " (a) GENERAL RULE.—No deduction shall be allowed for the following taxes: "(1) Federal income taxes, including— 75 Stat. 141. " (A) the tax imposed by section 3101 (relating to the tax on employees under the Federal Insurance Contributions

26 USC 31013126.

•jy^ii^i^^22i^' ^^' 26 USC 3201, 3211^°usc' ^^°'

26 USC 901. 26 USC 164.

Act); " (B) the taxes imposed by sections 3201 and 3211 (relating ^^ ^ ^ taxes on railroad employees and railroad employee ® representatives); and " (C) the tax withheld at source on wages under section 3402, and corresponding provisions of prior revenue laws. "(2) Federal war profits and excess profits taxes. "(3) Estate, inheritance, legacy, succession, and gift taxes. "(4) Income, war profits, and excess profits taxes imposed by the authority of any foreign country or possession of the United States, if the taxpayer chooses to take to any extent the benefits Qf section 901 (relating to the foreign tax credit). «(5) Taxes on real property, to the extent that section 164(d) requires such taxes to be treated as imposed on another taxpayer. "(b)

26 USC 535. 26 USC 545.

26 USC 556.

26 USC 901. 26 USC 903.

CROSS REFERENCE.—

"For disallowance of certain other taxes, see section 164(c)." (B) The table of sections for such part IX is amended by adding at the end thereof the following: "Sec. 275. Certain taxes." ^4^ Paragraph (1) of section 535(b) (relating to adjustments to accumulated taxable income) is amended by striking out "section 164(b)(6) " and inserting in lieu thereof "section 275(a)(4)". (5) The first sentence of paragraph (1) of section 545(b) (relating to adjustments to personal holding company taxable income) is amended by striking out "section 164(b)(6) " and inserting in lieu thereof "section 275(a)(4)". (g) The first sentence of paragraph (1) of section 556(b) (relating to adjustments to for e i ^ personal holding company taxable income) is amended by striking out "section 164(b)(6) " and inserting in lieu thereof "section 275(a)(4)". (Y) Paragraph (1) of section 901(d) (relating to credit for taxes impose4 by foreign countries) is amended by striking out "section 164" and inserting in lieu thereof "sections 164 and 275". (8) Section 903 (relating to credit for taxes imposed by a foreign country in lieu of income, etc., taxes) is amended by striking out "section 164(b)" and inserting in lieu thereof "sections 164(a) and 275(a)".

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Page:United States Statutes at Large Volume 78.djvu/85

 78 STAT. ] (e)

PUBLIC LAW 88-272-FEB. 26, 1964

43

EFFECTIVE D A T E. —

(1) GENERAL RULE.—Except as provided in paragraph (2), the amendments made by this section shall apply to taxable years beginning after December 31, 1963. (2) SPECIAL TAXING DISTRICTS.—Section 164(c)(1) of the Interp. 40. nal Revenue Code of 1954 (as amended by subsection (a)) shall Ante,s e 164. 26 u not prevent the deduction under section 164 of such Code (as so amended) of taxes levied by a special taxing district which is described in section 164(b)(5) of such Code (as in effect for a taxable year ending on December 31, 1963) and which was in existence on December 31, 1963, for the purpose of retiring indebtedness existing on such date. SEC. 208. PERSONAL CASUALTY AND THEFT LOSSES. (a) LIMITATION ON AMOUNT OF CASUALTY OR THE F T Loss DEDUCTION.—Section 165(c)(3) (relating to losses of property not connected 68Au Stat. 49. 26 s e 165. with trade or business) is amended to read as follows: " (3) losses of property not connected with a trade or business, if such losses arise from fire, storm, shipwreck, or other casualty, or from theft. A loss described in this paragraph shall be allowed only to the extent that the amount of loss to such individual arising from each casualty, or from each theft, exceeds $100. For purposes of the $100 limitation of the preceding sentence, a husband and wife making a joint return under section 6013 for ^^ ^^^ ^°^^the taxable year in which the loss is allowed as a deduction shall be treated as one individual. No loss described in this paragraph shall be allowed if, at the time of filing the return, such loss has been claimed for estate tax purposes in the estate tax return," (b) EFFECTIVE DATE.—The amendment made by subsection (a) shall apply to losses sustained after December 31, 1963, in taxable years ending after such date. SEC. 209. CHARITABLE, ETC., CONTRIBUTIONS AND GIFTS. (a) CERTAIN ORGANIZATIONS ADDED TO ADDITIONAL 10-PERCENT CHARITABLE LiMiTATiON.--Section 170(b)(I)(A) (relating to limita-

tion on amount of deduction for charitat3le contributions by individuals) is amended by striking out "or" at the end of clause (iii), and by inserting after clause (iv) the following new clauses: " (v) a governmental unit referred to in subsection (^)(1)'0^ .. ... " (vi) an organization referred to in subsection (c)(2) which normally receives a substantial part of its support (exclusive of income received in the exercise or performance by such organization of its charitable, educational, or other purpose or function constituting the basis for its exemption under section 501(a)) from a governmental unit referred to in subsection (c)(1) or from direct or indirect contributions from the general public,". (b)

26 USC soi.

UNLIMITED CHARITABLE CONTRIBUTION DP:DUCTION.—Section

170 (relating to charitable, etc., contributions and gifts) is amended by inserting after subsection (f) (added by subsection (e) of this section) the following new subsection: "(g)

H ulc iVo?

APPLICATION OF UNLIMITED CHARITABLE CONTRIBUTION D E -

miCTION.— " (1) ALLOWANCE OF DEDUCTION FOR TAXABLE YEARS BEGINNING AFTER DECEMBER 31, 1963.—If the taxable year begins after

December 31, 1963— " (A) subsection (b)(1)(C) shall apply only if the taxpayer so elects (at such time and in such manner as the Secretary or his delegate by i*egulations prescribes); and

^°^'' ^' ^^^

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Page:United States Statutes at Large Volume 78.djvu/86

 44

PUBLIC LAW 88-272-FEB. 26, 1964

[78 STAT.

" (B) for purposes of subsection (b)(1)(C), the amount of the charitable contributions for the taxable year (and for all prior taxable years beginning after December 31, 1963) shall be determined without the application of subsection (b)(5) and solely by reference to charitable contributions described in paragraph (2). I f the taxpayer elects to have subsection (b)(1)(C) apply for the taxable year, then for such taxable year subsection (a) shall apply only with respect to charitable contributions described in paragraph (2), and no amount of charitable contributions made in the taxable year or any prior taxable year may be treated under subsection (b)(5) as having been made in the taxable year or in any succeeding taxable year. "(2) QUALIFIED CONTRIBUTIONS.—The charitable contributions referred to in paragraph (1) are— " (A) any charitable contribution described in subsection (b)(1)(A); " (B) any charitable contribution, not described in subsection (b)(1)(A), to an organization described in subsection (c)(2) substantially more than half of the assets of which is devoted directly to, and substantially all of the income of which is expended directly for, the active conduct of the activities constituting the purpose or function for which it is organized and operated; " (C) any charitable contribution, not described in subsection (b)(1)(A), to an organization described in subsection (c)(2) which meets the requirements of paragraph (3) with respect to such charitable contribution; and " (D) any charitable contribution payment of which is made on or before the date of the enactment of the Revenue Act of 1964. "(3)

ORGANIZATIONS EXPP:NDING AT LEAST 50 P?:RCENT OF DONOR'S

CONTRIBUTIONS.—An Organization shall be an organization referred to in paragraph (2)(C), with respect to any charitable contribution, only if— " (A) not later than the close of the third year after the organization's taxable year in which the contribution is received (or before such later time as the Secretary or his delegate may allow upon good cause shown by such organization), such organization expends an amount equal to at least 50 percent of such contribution for— "(i) the active conduct of the activities constituting the purpose or function for which it is organized and operated, "(ii) assets which are directly devoted to such active conduct, "(iii) contributions to organizations which are described in subsection (b)(1)(A) or in paragraph (2) (B) of this subsection, or "(iv) any combination of the foregoing; and " (B) for the period beginning with the taxable year in which such contribution is received and ending with the taxable year in which subparagraph (A) is satisfied with respect to such contribution, such organization expends all of its net income (determined without regard to capital gains and losses) for the purposes described in clauses (i), (ii), (iii), and (iv) of subparagraph (A). If the taxpayer so elects (at such time and in such manner as the Secretary or his delegate by regulations prescribes) with respect

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Page:United States Statutes at Large Volume 78.djvu/87

 78 STAT. ]

PUBLIC LAW 88-272-FEB. 26, 1964

45

to contributions made by him to any organization, then, in applying subparagraph (B) with respect to contributions made by him to such organization during his taxable year for which such election is made and during all his subsequent taxable years, amounts expended by the organization after the close of any of its taxable years and on or before the loth day of the third month following the close of such taxable year shall be treated as expended during such taxable year. "(4) DISQUALIFYING TRANSACTIONS.—An organization shall be an organization referred to in subj^aragraph (B) or (C) of paragraph (2) only if at no time during the period consisting of the organization's taxable year in which the contribution is received, its 3 preceding taxable years, and its 3 succeeding taxable years, such organization— " (A) lends any part of its income or corpus to, " (B) pays compensation (other than reasonable compensation for personal services actually rendered) to, " (C) makes any of its serA'ices available on a preferential basis to, " (D) purchases more than a minimal amount of securities or other property from, or " (E) sells more than a minimal amoinit of securities or other property to, the donor of such contribution, any member of his family (as defified in section 267(c)(4)), any employee of the donor, any 26^us*c*267^* officer or employee of a corporation in which he owns (directly or indirectly) 50 percent or more in value of the outstandhig stock, or any partner or employee of a partnership in which he owns (directly or indirectly) 50 percent or more of the capital interest or profits interest. This paragraph shall not apply to transactions occurring on or before the date of the enactment of the^ Revenue Act of 1964."' (c) 5 - Y K A R CARRYOVER OF CERTAIN M A D E HY I N D IV I D U A L S. —

CirARiTAHLK C O X T R I H I TIONS

(1) IN GENERAL.—Section 170(b) (relating to limitations on amount of deduction for charitable cimtributions) is amended by adding at the end thereof the following new paragraph: "(5) CARRYOVER INDIVIDUALS.

OF

CERTAIN

EXCESS

COXTRIIUTIONS

72 Stat. 1610. 26 USC 170.

BY

" (A) I n the case of an individual, if the amount of charitable contributions described in paragraph (1)(A) payment of which is made within a taxable year (hereinafter in this paragraph referred to as the 'contiibution year') beginning after December 31, 1963. exceeds 30 percent of the taxpayer's adjusted gross income for such year (computed without regard to any net operating loss carryback to such year under section 172), such excess shall be treated as a charitable contribution described in paragraph (1)(A) paid in each of the 5 succeeding taxable years in order of time, but. with respect to any such succeeding taxable year, only to the extent of the lesser of the two following amounts: " (i) the amount by which 30 percent of the taxpayer's adjusted gross income for such succeeding taxable year (cx)mpute(i without regard to any net operating loss carryback to such succeeding taxable year under section 172) exceeds the sum of the charitable contributions describe<l in paragraph (1)(A) payment of which is made by the taxpa3'er within such succeeding taxable year (determined without regard to this subparagraph)

^^ "^*^ ^'^'-

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Page:United States Statutes at Large Volume 78.djvu/88

 46

PUBLIC LAW 88-272-FEB. 26, 1964

26 us^c f?^^' 72 Stat. 1631, 26 USC 556.

[78 STAT.

and the charitable contributions described in paragraph (1)(A) payment of which was made in taxable years (beginning after December 31, 1963) before the contribution year which are treated under this subparagraph as having been paid in such succeeding taxable year; or "(ii) in the case of the first succeeding taxable year, the amount of such excess, and in the case of the second, third, fourth, or fifth succeeding taxable year, the portion of such excess not treated under this subparagraph as a charitable contribution described in paragraph (1)(A) paid in any taxable year intervening between the contribution year and such succeeding taxable year. " (B) I n applying subparagraph (A), the excess determined under subparagraph (A) for the contribution year shall be reduced to the extent that such excess reduces taxable income (as computed for purposes of the second sentence of section 172(b)(2)) and increases the net operating loss deduction for a taxaple year sucM-eedi iig the contribution year." (2) TECHNICAL AM?:XDMKNT«.—Sections.545(b)(2) (i"elating < deductions for charitable contributions by personal holding companies) and o56(b)(2) (relating to deductions for charitable contributions by foreign personal holding companies) are each amended by striking out "section 1 7 0 (b)(2) " and inserting in lieu thereof ''section 170(b)(2) and (5)". (d) 5-YEAR CAKRYOVER OF CERTAIN' CHARrrAJiiJ*: CoNnnBunoxs MAHE BY CoRPOR-VriONS.—

68Astat. 58. ^^ '

26 USC 381.

(1) j ^ GENERAL.—Section 170(b)(2) (relating to limitation on amount of deduction for charitable contributions by corporations) is amended by striking out the sentence following subparagraph (D) and inserting in lieu thereof the following: "Any contribution made by a corporation in a taxable year (hereinafter in this sentence referred to as the 'contribution year') in excess of the amount deductible for such year under the preceding sentence shall be deductible for each of the 5 succeeding taxable years in order of time, but only to the extent of the lesser of the two following amounts: (i) the excess of the maximum amount deductible for such succeeding taxable year under the preceding sentence over the sum of the contributions made in such year plus the aggregate of the excess contributions which were made in taxable years before the (contribution year and which are deductible under this sentence for such succeeding taxable year; or (ii) in the case of the first succeeding taxable year, the amount of such excess contribution, and in the case of the second, third, fourth, or fifth succeeding taxable year, the portion of such excess contribution not deductible under this sentence for any taxable year intervening between <he conti-ibution year and such succeeding taxable year." (2.) CARRYOVERS IN CERTAIN CORPORATK ACQI isrnoNS.—Paragraph (19) of section 381(c) (relathig to items of distriputor or transferor corporation) is amended to read as follows: "(19) CHARITABLE CONTRIHUTIONS I N EXCESS OF PRIOR YEARS*

LIMITATIONS.—Contributions made in the taxable year ending on the date of distribution or transfer and the 4- prior taxable years by the distributor or transferor corporation in excess of the amount deductible nnder section 170(b^ (2) for such taxable years shall be dednctible by the acquiring corporation for its taxable years which begin after the date of distribution or transfer, subject to the limitations imposed in section l7f> (b)(2). Tn applying the pi-eceding sentence, each taxable year

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of the distributor or transferor corporation beginning on or before the date of distribution or transfer shall be treated as a prior taxable year with reference to the acquiring corporation's taxable years beginning after such date." (e) FUTURE INTERESTS I N TANGIBLE PERSONAL PROPERTY.—Sec-

tion 170 (relating to charitable, etc., contributions and gifts) is ^J^^ ^*r*43!°^^' amended by redesignating subsections (f) and (g) as subsections (h) 26 USC no. and (i), respectively, and by inserting after subsection (e) the following new subsection: "(f)

FUTURE INTERESTS I N TANGIBLE PER«K)NAL PROPERTY,—For

purposes of this section, payment of a charitable contribution which consists of a future interest in tangible personal property shall be treated as made only when all intervening interests in, and rights to the actual possession or enjoyment of, the property have expired or are held by persons other than the taxpayer or those standing in a relationship to the taxpayer described in section 267(b). For pur- 26 USC 267. poses of the preceding sentence, a fixture which is intended to be severed from the real property shall be treated as tangible personal property." (f) EFFECTIVE DATES.—

(1) The amendments made by subsections (a), (b), and (c), shall apply with respect to contributions which are paid' in taxable years beginning after December 31, 1963. (2) The amendments made by subsection (d) shall apply to taxable years beginning after December 31, 1963, with respect to contributions which are paid (or treated as paid under section 170(a)(2) of the Internal Revenue Code of 1954) in taxable years beginning after December 31, 1961. (3) The amendments made by subsection (e) shall apply to transfers of future interests made after December 31, 1963, in taxable years ending after such date, except that such amendments shall not apply to any transfer of a future interest made before July 1, 1964, where— (A) the sole intervenuig interest or right is a nontransferable life interest reserved by the donor, or (B) in the case of a joint gift by husband and wife, the sole intervening interest or right is a nontransferable life interest, reserved by the donors which expires not later than the death of whichever of such donors dies later. For purposes of the exception contained in the preceding sentence, a right to make a transfer of the reserved life interest to the donee of the future interest shall not be treated as making a life interest transferable. SEC. 210. LOSSES ARISING FROM EXPROPRIATION OF PROPERTY BY GOVERNMENTS OF FOREIGN COUNTRIES. (a) N E T OPERATING LOSS CARRYOVER.—Section 172 (relating to

26 USC f?^

net operating loss deduction) is amended— (1) by striking out "Except as provided in clause ( i i) " in subsection (b)(l)(A)(i) and inserting in lieu thereof "Except as provided in clause (ii) and in subparagraph (D) "

(3) by adding at the end of subsection (b)(1) the followhig new subparagraph: " (D) I n the case of a taxpayer which has a foreign expropriation loss (as defined in subsection (k)) for any taxable ^°^*' P' '*^year ending after December 31, 1958, the portion of the net operating loss for such year attributable to such foreign ex-

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ae'uscTgoirgos

26 USC m '

[78 STAT.

I)ropriation loss shall not be a net operating loss carryback to any taxable year preceding the taxable year of such loss and shall be a net operating loss carryover to each of the 10 taxable years following the taxable year of such loss."; (4) by adding at the end of subsection (b)(3) the following new subparagraphs: " (C) Paragraph (1)(D) shall apply only if— " (i) the foreign expropriation loss (as defined in subsection (k)) for the taxable year equals or exceeds 50 percent of the net operating loss for the taxable year, "(ii) in the case of a foreign expropriation loss for a taxable year ending after December 31, 1963, the taxpayer elects (at such time and in such manner as the Secretary or his delegate by regulations prescribes) to have paragraph (1)(D) apply, and "(iii) in the case of a foreign expropriation loss for a taxable year ending after December 31, 1958, and before January 1, 1964, the taxpayer elects (in such manner as the Secretary or his delegate by regulations prescribes) on or before December 31, 1965, to have paragraph (1)(D) apply. " (D) If a taxpayer makes an election under subparagraph (C) ( i i i), then (notwithstanding any law or rule of law), with respect to any taxable year ending before January 1, 196-1-, affected by the election— " (i) the time for making or changing any choice or election under subpart A of part III of subchapter X (relating to foreign tax credit) shall not expire before January 1, 1966, "(ii) any deficiency attributable to the election under subparagraph (C) (iii) or to the application of clause (i) of this subparagraph m&.j be assessed at any time before January 1, 1969, and "(iii) refund or credit of any overpayment attributable to the election under subparagraph (C) (iii) or to the application of clause (i) of this subparagraph may be made or allowed if claim therefor is filed before January 1, 1969."; ^'*^ ^y redesignating subsection (k) as (1), and by inserting after subsection (j) the following new subsection: '• (k) FoRETGx ExpKOPRiATiox Loss DEFINED.—For purposes of substH-iion (b) —

26 u*sc m *

"(1) The term 'foreign expropriation loss' means, for any taxable year, the sum of the losses sustained by reason of the expropriation, intervention, seizure, or similar taking of property by the government of any foreign country, any political subdivision thereof, or any agency or instrumentality of the foregoing. For purposes of the preceding sentence, a debt which becomes worthless shall, to the extent of any deduction allowed under section 166 (a), be treated as a loss. "(2) The portion of the net operating loss for any taxable year attributable to a foreign expropriation loss is the amount of the foreign expropriation loss for such year (but not in excess of the net operating loss for such year)." ^*^^ TECHNICAL AMENDMENTS.—Section 172(b)(2) is amended— (1) by striking out subparagraph (B) and inserting in lieu thereof the following: " (B) by determining the amount of the net operating loss deduction—

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" (i) without regard to the net operating loss for the loss ^ear or for any taxable year thereafter, and "(li) without regard to that portion, if any, of a net operating loss for a taxable year attributable to a foreign expropriation loss, if such portion may not, under paragraph (1)(D), be carried back to such prior taxable year,"; and (2) by adding at the end thereof the following new sentence: "For purposes of this paragraph, if a portion of the net operating loss for the loss year is attributable to a foreign expropriation loss to which paragraph (1)(D) applies, such portion shall be considered to be a separate net operating loss for such year to be applied after the other portion of such net operating loss." (c) ErPECTn^ DATE.—The amendments made by this section shall apply in respect of foreign expropriation losses (as defined in section 172 (k) of the Internal Revenue Code of 1954, as amended by subsection (a)(5) of this section), sustained in taxable years ending after December 31, 1958. SEC. 211. ONE-PERCENT LIMITATION ON MEDICINE AND DRUGS. (a) GENERAL RULE.—Subsection (b) of section 213 (relating to medical, dental, etc., expenses) is amended by adding at the end thereof the following new sentence: "The preceding sentence shall not apply to amounts paid for the care of— " (1) the taxpayer and his spouse, if either of them has attained the age of 65 before the close of the taxable year, or "(2) any dependent described in subsection (a)(1)(A). " (b) EFFECTIVE DATE.—The amendment made by subsection (a) shall apply to taxable years beginning after December 31, 1963. SEC. 212. CARE OF DEPENDENTS. (a) CHILD CARE ALLOWANCE.—Section 214 (relating to expenses

for care of certain dependents) is amended to read as follows:

"SEC. 214. EXPENSES FOR CARE OF CERTAIN DEPENDENTS. " (a) GENERAL RULE.—There shall be allowed as a deduction expenses paid during the taxable year by a taxpayer who is a woman or widower, or is a husband whose wife is incapacitated or is institutionalized, for the care of one or more dependents (as defined in subsection (d)(1)), but only if such care is lor the purpose of enabling t he taxpayer to be gainfully employed. "(b)

LIMITATIONS.— "(1) DOLLAR LIMIT.—

" (A) Except as provided in subparagraph (B), the deduction under subsection (a) shall not exceed $600 for any taxable year. " (B) The $600 limit of subparagraph (A) shall be increased (to an amount not above $900) by the amount of expenses incurred by the taxpayer for any period during which the taxpayer had 2 or more dependents. "(2)

WORKING

WIVES AND HUSBANDS WITH

INCAPACITATED

WIVES,—In the case of a woman who is married and in the case of a husband whose wife is incapacitated, the deduction under subsection (a) — " (A) shall not be allowed unless the taxpayer and his spouse file a joint return for the taxable year, and " (B) shall be reduced by the amount (if any) by which the adjusted gross income of the taxpayer and his spouse exceeds $6,000. This paragraph shall not apply, in the case of a woman who is married, to expenses incurred while her husband is incapable of

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68A Stat. 69. 26 USC 213.

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self-support beasementally or physically defective, or, in the case of a husband whose wife is incapacitated, to expenses incurred while his wife is institutionalized if such institutionalization is for a period of at least 90 consecutive days (whether or not within one taxable year) or a shorter period if terminated by her death. " (3) CERTAIN PAYMENTS NOT TAKEN INTO ACCOUNT.—Subsec68A Stat. 42 26 USC 151.

tion (a) shall not apply to any amount paid to an individual with respect to whom the taxpayer is allowed for his taxable year a deduction under section 151 (relating to deductions for personal exemptions). " (c) SPECIAL RULE AVHERE W I F E I S INCAPACITATED OR INSTITU-

26 ubu 152.

TIONALIZED.—In the case of a husband whose wife is incapacitated or is institutionalized, the deduction under subsection (a) shall be allowed only for expenses incurred while the wife was incapacitated or institutionalized (as the case may be) for a period of at least 90 consecutive days (whether or not within one taxable year) or a shorter period if terminated by her death. " (d) DEFINITIONS.—For purposes of this section— "(1) DEPENDENT.—The term 'dependent' means a person with respect to whom the taxpayer is entitled to an exemption under section 151(e)(1)— " (A) who has not attained the age of 18 years and who (within the meaning of section 152) is a son, stepson, daughter, or stepdaughter of the taxpayer; or " (B) who is physically or mentally incapable of caring for himself. "(2) WIDOWER.—The term 'widower' includes an unmarried individual who is legally separated from his spouse under a decree of divorce or of separate maintenance. "(3) INCAPACITATED WIFE.—A wife shall be considered incapacitated only (A) while she is incapable of caring for herself beasementally or physically defective, or (B) Avhile she is institutionalized. "(4) INSTITUTIONALIZED WIFE.—A wife shall be considered institutionalized only while she is, for the purpose of receiving medical care or treatment, an inpatient, resident, or inmate of a public or private hospital, sanitarium, or other similar institution. "(5) DETERMINATION OF STATUS.—A woman shall not be considered as married if— " (A) she is legally separated from her spouse under a decree of divorce or of separate maintenance at the close of the taxable year, or " (B) she has been deserted by her spouse, does not know his whereabouts (and has not known his whereabouts at any time during the taxable year), and has applied to a court, of competent jurisdiction for appropriate process to compel him to pay support or otherwise to comply with the law or a judicial order, as determined under regulations ijrescribed by the Secretary or his delegate." (b) EFFECTIVE DATE.—The amendment made by subsection (a) shall apply to taxable years beginning after December 31, 1963. SEC. 213. MOVING EXPENSES. (a) DEDUCTION ALLOWED FOR MOVING EXPENSES.—

26 USC 211-217.

(1) pprt V l l of Subchapter B of chapter 1 (relating to additional itemized deductions for individuals) is amended by redesignating section 217 as section 218 and by inserting after section 216 the following new section:

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