64
INTERNAL REVENUE CODE OF 1954
(A) the amount deductible on account of losses from sales or exchanges of capital assets shall not exceed the amount includible on account of gains from sales or exchanges of capital assets; and (B) the deduction for long-term capital gains provided by section 1202 shall not be allowed. (3) DEDUCTION FOR PERSONAL EXEMPTIONS.—No deduction shall be allowed under section 151 (relating to personal exemptions). N o deduction in lieu of any such deduction shall be allowed. (4) NONBUSINESS
DEDUCTIONS
OF TAXPAYERS
OTHER
THAN
CORPORATIONS.—In the case of a taxpayer other than a corporation, the deductions allowable by this chapter which are not attributable to a taxpayer's trade or business shall be allowed only to the extent of the amount of the gross income not derived from such trade or business. For purposes of the preceding sentence— (A) any gain or loss from the sale or other disposition of— (i) property, used in the trade or business, of a character which is subject to the allowance for depreciation provided in section 167, or (ii) real property used in the trade or business, shall be treated as attributable to the trade or business; (B) the modifications specified in paragraphs (1), (2)(B), and (3) shall be taken into account; and (C) any deduction allowable under section 165(c)(3) (relating to casualty losses) shall not be taken into account. (5) SPECIAL
DEDUCTIONS FOR CORPORATIONS.—No
deduction
shall be allowed under section 242 (relating to partially tax-exempt interest) or under section 922 (relating to Western Hemisphere trade corporations). (6) COMPUTATION
OF DEDUCTION
FOR DIVIDENDS RECEIVED,
ETC.—The deductions allowed by sections 243 (relating to dividends received by corporations), 244 (relating to dividends received on certain preferred stock of public utilities), and 245 (relating to dividends received from certain foreign corporations) shall be computed without regard to section 246(b) (relating to limitation on aggregate amount of deductions); and the deduction allowed by section 247 (relating to dividends paid on certain preferred stock of public utilities) shall be computed without regard to subsection (a)(1)(B) of such section. (e) L A W APPLICABLE
TO COMPUTATIONS.—In
determining
the
amount of any net operating loss carryback or carryover to any taxable year, the necessary computations involving any other taxable year shall be made under the law appHcable to such other taxable year. The preceding sentence shall apply with respect to all taxable years, whether they begin before, on, or after January 1, 1954. (f) TAXABLE Y E A R S BEGINNING I N 1953 AND E N D I N G I N 1954.— In the case of a taxable year beginning in 1953 and ending in 1954— (1) I n lieu of the amount specified in subsection (c), the n e t operating loss for such year shall be the sum of— (A) that portion of the net operating loss for such year computed without regard to this subsection which the number of days in the loss year after December 31, 1953, bears to the total number of days in such year, and § 172(d)(2)(A)
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