PUBLIC LAW 95-600—NOV. 6, 1978
92 STAT. 2867
(2) by redesignating subsection (d) as subsection (b), and (3) by amending the section heading to read as follows: "SEC. 1201. ALTERNATIVE TAX FOR CORPORATIONS.". (b) CONFORMING AMENDMENTS.—
(1) Paragraph (1) of section 3(b) is amended by striking out subparagraph (B) and by redesignating subparagraphs (C) and (D) as subparagraphs (B) and (C), respectively. (2) Subsection (a) of section 5 is amended by striking out paragraph (3) and by redesignating paragraphs (4) and (5) as paragraphs (3) and (4), respectively. (3) Paragraph (1) of section 871(b) is amended by striking out "section 1, 402(e)(1), or 1201(b)" and inserting in lieu thereof "section l o r 402(e)(1)". (4) Paragraph (1) of section 911(d) is amended— (A) by striking out "section 1 or section 1201" each place it appears and inserting in lieu thereof "section 1", and (B) by striking out "(whichever is applicable)" each place it appears. (5) Subsection (b) of section 1304 is amended— (A) by adding "and" at the end of paragraph (2), (B) by striking out paragraph (3), and (C) by redesignating paragraph (4) as paragraph (3). (6) The table of sections for part I of subchapter P of chapter 1 is amended by striking out the item relating to section 1201 and inserting in lieu thereof the following:
26 USC 3. 26 USC 5. 26 USC 871. 26 USC 911.
26 USC 1304.
"Sec. 1201. Alternative tax for corporations." (c) EFFECTIVE DATE.—The amendments made by this section shall 26 USC 1201
apply to taxable years beginning after December 31, 1978. SEC. 402. INCREASED CAPITAL GAINS DEDUCTION FOR INDIVIDUALS. (a) GENERAL RULE.—Section 1202 (relating to deduction for capital gains) is amended to read as follows: "SEC. 1202. DEDUCTION FOR CAPITAL GAINS. "(a) IN GENERAL.—If for any taxable year a taxpayer other than a corporation has a net capital gain, 60 percent of the amount of the net capital gain shall be a deduction from gross income. "(b) ESTATES AND TRUSTS.—In the case of an estate or trust, the deduction shall be computed by excluding the portion (if any) of the gains for the taxable year from sales or exchanges of capital assets which, under sections 652 and 662 (relating to inclusions of amounts in gross income of beneficiaries of trusts), is includible by the income beneficiaries as gain derived from the sale or exchange of capital assets. "(c) TAXABLE YEARS WHICH INCLUDE NOVEMBER 1, 1978.—If for any taxable year beginning before November 1, 1978, and ending after October 31, 1978, a taxpayer other than a corporation has a net capital gain, the deduction under subsection (a) shall be the sum of— "(1) 60 percent of the lesser of— "(A) the net capital gain for the taxable year, or "(B) the net capital gain taking into account only sales and exchanges after October 31, 1978, plus "(2) 50 percent of the excess of— "(A) the net capital gain for the taxable year, over "(B) the amount of net capital gain taken into account under paragraph (1)." (b) TECHNICAL AMENDMENTS.—
note. 26 USC 1202.
26 USC 652, 662.
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