CH. 1
NORMAL TAXES AND SURTAXES
335
this subsection, a member of a partnership shall be deemed to have been a member of the partnership for any period, ending immediately prior to becoming such a member, in which he was an employee of such partnership, if during the taxable year he received or accrued compensation attributable to employment by the partnership during such period. SEC. 1302. INCOME FROM AN INVENTION OR ARTISTIC WORK. (a) LIMITATION ON TAX.—If—
(1) an individual includes in gross income amounts in respect of a particular invention or artistic work created by the individual; and (2) the work on the invention or the artistic work covered a period of 24 months or more (from the beginning to the completion thereof); and (3) the amounts in respect of the invention or the artistic work includible in gross income for the taxable year are not less than 80 percent of the gross income in respect of such invention or artistic work in the taxable year plus the gross income therefrom in previous taxable years and the 12 months immediately succeeding the close of the taxable year, then the tax attributable to the part of such gross income of the taxable year which is not taxable as a gain from the sale or exchange of a capital asset held for more than 6 months shall not be greater than the aggregate of the taxes attributable to such part had it been received ratably over, in the case of an invention, that part of the period preceding the close of the taxable year or 60 months, whichever is shorter, or, in the case of an artistic work, that part of the period preceding the close of the taxable year but not more than 36 months. (b) DEFINITIONS.—For purposes of this section— (1) INVENTION.—The term "invention" means a patent covering an invention of the individual. (2) ARTISTIC WORK.—The term "artistic work" means a literary, musical, or artistic composition or a copyright covering a literary, musical, or artistic composition. SEC. 1303. INCOME FROM BACK PAY. (a) LIMITATION ON T A X. — I f the amount of the back pay received or accrued by an individual during the taxable year exceeds 15 percent of the gross income of the individual for such year, the part of the tax attributable to the inclusion of such back pay in gross income for the taxable year shall not be greater than the aggregate of the increases in the taxes which would have resulted from the inclusion of the respective portions of such back pay in gross income for the taxable years to which such portions are respectively attributable, as determined under regulations prescribed by the Secretary or his delegate. (b) DEFINITION OF BACK P A Y. — For purposes of this section, the term "back p a y " means amounts includible in gross income under this subtitle which are one of the following— (1) Remuneration, including wages, salaries, retirement pay, and other similar compensation, which is received or accrued during the taxable year by an employee for services performed before the taxable year for his employer and which would have been paid before the taxable year except for the intervention of one of the following events: § 1303(b)(1)
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