66 STAT.]
PUBLIC LAW 183—OCT. 20, 1951
485
of the same class subject to the provisions of both subparagraph (A) and this subparagraph, the involuntary liquidations of such goods subject to the provisions of this subparagraph shall be considered for the purpose of subparagraph (C) as having occurred prior to the involuntary liquidations of such goods subject to the provisions of subparagraph (A). For the purpose of this clause, and with respect to the taxable years covered by this subparagraph, the reference in subparagraph (E) to section 734(d) shall be taken as a reference to section 4 5 2 (d). " , ^^^c.Ucd). (b) EFFECTIVE DATE.—The amendment made by subsection (a) shall be applicable with respect to taxable years ending after June 30, 1950. SEC. 307. MEDICAL EXPENSES. (a) AMENDMENT OF SECTION 23 (x).—Section 23(x) (relating 26u*s 1!%23(x) to medical, dental, etc., expenses) is hereby amended to read as follows: " (x) MEDICAL, DENTAL, ETC., EXPENSES.—Expenses paid during the taxable year, not compensated for by insurance or otherwise, for medical care of the taxpayer, his spouse, or a dependent specified in section 25(b)(3) ' g?t.^|/«-. ^,, ^.^ " (1) If neither the taxpayer nor his spouse has attained the age (3). of 65 before the close of the taxable year, to the extent that such expenses exceed 5 per centum of the adjusted gross income; or "(2) If either the taxpayer or his spouse has attained the age of 65 before the close of the taxable year, (A) the amount of such expenses for the care of the taxpayer and his spouse, and (B) the amount by which such expenses for the care of such dependents exceed 5 per centum of the adjusted gross income. The deduction under this subsection shall not be in excess of $1,250 multiplied by the number of exemptions allowed under section 25(b) for the taxable year (exclusive of exemptions allowed under section 25 (b)(1)(B) or (C), with a maximum deduction of $2,500, except |f*^*g238 § 25 (b) 26 U.S.C. that the maximum deduction shall be $5,000 in the case of a joint (i). return of husband and wife under section 51(b). The term 'medical ^ufs.^c. § 51(b). care', as used in this subsection, shall include amounts paid for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for the purpose of affecting any structure or function of the body (including amounts paid for accident or health insurance). The determination of whether an individual is married at any time during the taxable year shall be made in accordance with the provisions of section 51(b)(5)." Eeu's'c'Hi (b) (b) EFFECTIVE DATE.—The amendment made by this section shall (5). be applicable with respect to taxable years beginning after December 31, 1950. SEC. 308. STANDARD DEDUCTION. (a) METHOD OF ELECTION.—Subparagraphs (A) and (B) of section
23 (aa)(3) (relating to optional standard deduction for individuals) are hereby amended by striking out the word "only"; and subparagraph (C) of section 23 (aa)(3) is hereby amended to read as follows: " (C) If the taxpayer upon making his return fails to signify, in the manner provided by subparagraph (A) or (B), his election to take the standard deduction, such failure shall be considered his election not to take the standard deduction." (b) CHANGE OF ELECTION.—Section 23 (aa) is hereby amended by adding at the end thereof the following new paragraph: "(7) CHANGE OF ELECTION.—Under regulations prescribed by the Secretary, a change of an election to take, or not to take, the
^u?s.c.^23(aa).
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