66 STAT.]
493
PUBLIC LAW 183—OCT. 20, 1951
ing any cooperative or nonprofit corporation engaged in rural electri63 Stat. fication) exempt from taxation under section 101 (10) or (11) or in 26 U.S. 33. §101. C. the case of any corporation subject to a tax imposed by supplement G." 53 Stat. 71. 26 (d) EFFECTIVE DATE.—The amendments made by subsections (a) 210. U. 8. C. §§ 201pp. 466,467. and (b) of this section shall be applicable only with respect to taxable Ante, pp. 507, 508. Post, years beginning after December 31, 1951. The amendment made by subsection (c) shall be applicable to the calendar year 1951 and subsequent calendar years.
SEC. 315. SURTAX ON CORPORATIONS IMPROPERLY ACCUMULATING SURPLUS. (a) LONG-TERM CAPITAL GAINS.—Section 102(d)(1) (relating to 53 Stat. 35. dennition of section 102 net income) is hereby amended by adding at 26 U.S.C. §102. the end thereof the following new subparagraph: " (D) Long-Term Capital Gains.—The excess of the net long-term capital gain for the taxable year over the net shortterm capital loss for such year, minus the taxes imposed by this chapter attributable to such excess. The taxes attributable to such excess shall be an amount equal to the difference between (i) the taxes imposed by this chapter (except the tax imposed by this section) for such year and (ii) such taxes computed for such year without including such excess in net income." (b) EFFECTIVE DATE.—The amendment made by subsection (a) shall be applicable only with respect to taxable years beginning after December 31, 1950. SEC. 316. ELECTION AS TO RECOGNITION OF GAIN IN CERTAIN CORPORATE LIQUIDATIONS. 58 (a) AMENDMENT OF SECTION 112 (b)(7).—Section 112(b)(7) 931 Stat. 40; 64 Stat. (relating to recognition of gain in certain corporate liquidations) is 26 U.S.C. § 112 (b) hereby amended by striking out in subparagraph (A) (ii) "1951" and (7). by inserting in lieu thereof "1951 or 1952".
(b) BASIS OF PROPERTY.—Section 113(a) (18) (relating to basis of
property received in certain corporate liquidations) is amended by striking out "the Revenue Act of 1950" and by inserting in lieu thereof "any revenue act". (c) EFFECTIVE DATE.—The amendments made by this section shall be applicable only to taxable years ending after December 31, 1951. SEC 317. CERTAIN DISTRIBUTIONS OF STOCK ON REORGANIZATION. (a) DISTRIBUTIONS NOT IN LIQUIDATION.—Section 112(b) (relating
to nonrecognition of gain or loss in the case of certain exchanges) is hereby amended by adding at the end thereof the following new paragraph: "(11) DISTRIBUTION OF STOCK NOT I N LIQUIDATION.—If there is distributed, in pursuance of a plan of reorganization, to a shareholder of a corporation which is a party to the reorganization, stock (other than preferred stock) in another corporation which is a party to the reorganization, without the surrender by such shareholder of stock, no gain to the distributee from the receipt of such stock shall be recognized unless it appears that (A) any corporation which is a party to such reorganization was not intended to continue the active conduct of a trade or business after such reorganization, or (B) the corporation whose stock is distributed was used principally as a device for the distribution of earnings and profits to the snareholders of any corporation a party to the reorganization." (b) BASIS OP STOCK.—Section 113(a) (relating to unadjusted basis
for determining gain or loss) is hereby amended by adding at the end thereof the following new paragraph:
53 Stat. 44. 26 U.S.C. § 113 (a) (18).
53 Stat. 37. 2 6 U.S.C. § 112(b). /Supra.
63 Stat. 40. 26 U.S.C. §113(a). Ante, p. 483. Post, p. 496.
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