504
PUBLIC LAW 183—OCT. 20, 1951
26u.*s.^^§ 117 (i).
[65 STAT.
the later), clearlj identified in the dealer's records as a security held for investment; and " (B) the security was not, at any time after the expiration of such thirtieth day, held by such dealer primarily for sale to customers in the ordinary course of his trade or business. " (2) ORDINABY LOSSES.—Loss by a dealer in securities from the sale or exchange of any security shall, except as otherwise provided in subsection (i) (relating to bond, etc., losses of banks), in no event be considered as loss from the sale or exchange of property which is not a capital asset if at any time after the thirtieth day following the date of the enactment of the Revenue Act of 1951 the security was clearly identified in the dealer's records as a security held for investment. "(3) DEFINITION OF SECUKITY.—For the purposes of this subsection the term 'security' means any share of stock in any corporation, certificate of stock or interest in any corporation, note, bond, debenture, or evidence of indebtedness, or any evidence of an interest in or right to subscribe to or purchase any of the foregoing."
SEC. 3 8 TREATMENT OF GAIN ON SALES OF CERTAIN PROPERTY 2. BETWEEN SPOUSES AND BETWEEN AN INDIVIDUAL AND A CONTROLLED CORPORATION. 26U^s.c§ii7 Ante, p. 503.
(*) DISALLOWANCE OF CAPITAL G A I N TREATMENT.—Section 117 (relating to capital gains and losses) is hereby amended by adding at the end thereof the following new subsection: " (o) G A I N FROM SALE OF CERTAIN PROPERTY BETWEEN SPOUSES OR BETWEEN AN INDIVIDUAL AND A CONTROLLED CORPORATION.— "(1) TREATMENT OF GAIN AS ORDINARY INCOME.—In the case
of a sale or exchange, directly or indirectly, of property described in paragraph (2)— " (A) between a husband and wife; or " (B) between an individual and a corporation more than 80 per centum in value of the outstanding stock of which is owned by such individual, his spouse, and his minor children and minor ^ and c h i l d r e n; any gain recognized to the transferor from the sale or exchange of such property shall be considered as gain from the sale or exchange of property which is neither a capital asset nor property described Ante, pp. 500, 501.
J^ gubsCCtion (j).
" (2) SUBSECTION APPLICABLE ONLY TO SALES OR EXCHANGES OF DEPRECIABLE PROPERTY.—This subsection shall apply only in the
case of a sale or exchange of property by a transferor which in the hands of the transferee is property of a character which is sub26 u*s.^c § 23 (J). ^^^ ^^ t^® allowance for depreciation provided in section 23(1)." (b) EFFECTIVE DATE.—The amendment made by subsection (a) shall be applicable with respect to taxable years ending after April 30, 1951, but shall apply only with respect to sales or exchanges made after May 3, 1951. SEC. 329. RECEIPTS OF CERTAIN TERMINATION PAYMENTS BY EMPLOYEE. (a) TAXABILIIT TO EMPLOYEE AS CAPITAL GAIN.—Section 117 of the
^"P*""-
Internal Revenue Code is hereby amended by adding at the end thereof the following subsection: " (p) TAXABILITY TO EMPLOYEE OP TERMINATION
PAYMENTS.—
Amounts received from the assignment or release by an employee, after more than twenty years' employment, of all his rights to receive, after termination of his employment and for a period of not less than five years (or for a period ending with his death), a percentage of future profits or receipts of his employer shall be considered an amount
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