PUBLIC LAW 94-455—OCT. 4, 1976
90 STAT. 1929
" (3) SPECIAL RULE FOR CERTAIN CONTRIBUTIONS OF INVENTORY AND OTHER PROPERTY. " (A) QUALIFIED CONTRIBUTIONS.—For purposes of t h i s
paragraph, a qualified contribution shall mean a charitable contribution of property described in paragraph (1) or (2) of section 1221, hj a corporation (other than a corporation 26 USC 1221. which is an electing small business corporation within the meaning of section 1371(b)) to an organization which is described in section 501(c)(3) and is exempt under section 501 (a^ (other than a private foundation, as defined in section 5 0 9 (a), which is not an operating foundation, as defined i n section 4942(j)(3)), but only if— " (i) the use of the property by the donee is related to the purpose or function constituting the basis for its exemption under section 501 and the property is to be used by the donee solely for the care of the ill, the needy, or infants; " ( i i) the property is not transferred by the donee in exchange for money, other property, o r services; " ( i i i) the tax p a y e r receives from the donee a written statement representing that its use and disposition of the property will be in accordance with the provisions of clauses (i) and ( i i); and " (iv) in the case where the property is subject to regulation under the Federal Food, D r u g, and Cosmetic Act, 26 USC 301. as amended, such property must fully satisfy the applicable requirements of such Act and regulations promulgated thereunder on the date of transfer and for one hundred and eighty days prior thereto. " (B) A M O U N T OF REDUCTION.—The reduction under p a r a -
g r a p h (1)(A) for any qualified contribution (as defined in subparagraph (A)) shall be n o greater than the sum of— " (i) one-half of the amount computed under paragraph (1)(A) (computed without regard to this paragraph), and " (ii) the amount (if any) by which the charitable contribution deduction under this section for any qualified contribution (computed by taking into account the t^;..:., amount determined in clause (i), b u t without regard to this clause) exceeds twice the basis of such property. " (C) This paragraph shall not apply to so much of the amount of the gain described in paragraph (1)(A) which would be long-term capital gain but for the application of sections 617, 1245.1250, 1251, or 1252." (b) EFFECTIVE DATE.—The amendment made by this section applies 26 USC 170 to charitable contributions made after the date of enactment of this note. Act, in taxable years ending after such date. SEC. 2136. TAX TREATMENT OF THE GRANTOR OF OPTIONS OF STOCK, SECURITIES, AND COMMODITIES. (a) Section 1234 (relating to options to buy or sell) is amended to 26 USC 1234. read a s follows: "SEC. 1234. OPTIONS TO BUY OR SELL. " (a) TREATMENT o r G A I N OR Loss I N THE CASE OF THE P U R C H A S E R. —
" (1) GENERAL RULE.—Gain or loss attributable to the sale or exchange of, or loss attributable to failure to exercise, an option
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