83 STAT. ]
PUBLIC LAW 91-172-DEC. 30, 1969
555
to as the 'contribution year') in excess of the amount deductible for such year under subsection (b)(2) 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 subsection (b)(2) 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 subparagraph 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 subparagraph for any taxable year intervening between the contribution year and such succeeding taxable year. " (B) SPECIAL RULE FOR NET OPERATING LOSS CARRYOVERS.—
For purposes of subparagraph (A), the excess of— " (i) the contributions made by a corporation in a taxable year to which this section applies, over "(ii) the amount deductible m such year under the limitation in subsection (b)(2), 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 a net operating loss carryover under section 172 to a succeeding taxable year.
76 Stat. 889.
"(e) CERTAIN CONTRIBUTIONS or ORDINARY INCOME AND CAPITAL GAIN PROPERTY.— "(1) GENERAL RULE.—The amount of any charitable contribu-
tion of property otherwise taken into account under this section shall be reduced by the sum of— " (A) the amount of gain which would not have been longterm capital gain if the property contributed had been sold by the taxpayer at its fair market value (determined at the time of such contribution), and " (B) in the case of a charitable contribution— " (i) of tangible personal property, if the use by the donee is unrelated to the purpose or function constituting the basis for its exemption under section 501 (or, in the case of a governmental unit, to any purpose or function . described m subsection (c)), or "(ii) to or for the use of a private foundation (as defined in section 509(a)), other than a private founda^"<«' P- '*96tion described in subsection (b)(1)(E), 50 percent (621/^ percent, in the case of a corporation) of the amount of gain which would have been long-term capital gain if the property contributed had been sold by the taxpayer at its fair market value (determined at the time of such contribution). For purposes of applying this paragraph (other than in the case of gain to which section 617(d)(1), 1245 (a), 1250 (a), 1251 (c), or |>° f.^^-p^'sVi. 1252(a) applies), property which is property used in the trade 552. see, 572. or business (as defined in section 1231(b)) shall be treated as a ^^^ ^*^'- 2"capital asset. "(2) ALLOCATION OF BASIS.—For purposes of paragraph (1),
in the case of a charitable contribution of less than the taxpayer's entire interest in the property contributed, the taxpayer's adjusted
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