Page:United States Statutes at Large Volume 65.djvu/553

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65 STAT.]

PUBLIC LAW 183—OCT. 20, 1951

519

such organization prior to January 1, 1950, which provision expressly deals with the disposition of the gross income of the partnership) to pay within the taxable year in discharge of indebtedness incurred by such organization in acquiring its share of such trade or business, or to irrevocably set aside within the taxable year for the discharge of such indebtedness (to the extent that such amount has been so paid or set aside) if (i) such partnership was formed prior to January 1, 1950, for the purpose of carrying on such trade or business, and (ii) substantially all the assets used in carrying on such trade or business were acquired by it or by its members prior to such date. As used in the preceding sentence, the word 'indebtedness' does not include indebtedness incurred after January 1, 1950." (b) EFFECTIVE DATE.—The amendment made by this section shall be applicable with respect to taxable years beginning after December 31, 1950, and prior to January 1, 1954. SEC. 349. NONDISTRIBUTABLE INCOME OF PERSONAL HOLDING COMPANIES. Effective for taxable years beginning after December 31, 1939, section 504 is hereby amended by adding at the end thereof the following g f ®*- ^^^^ ^*^*g^ ** new subsection: 26 U.S.C. § 604. "(e) The amount by which the undistributed subchapter A net income determined without reference to this subsection exceeds the amount which could be distributed on the last day of the taxable year as a dividend (1) without violating any action, regulation, rule, order, or proclamation taken, promulgated, made, or issued by, or pursuant to the direction of, the President or any agency that he may designate, under the Trading With the Enemy Act of October 16, 1917, as ^gff.*s. c^app. ji. amended, or the First W a r Powers Act of 1941, and (2) not subject to 56 Stat.'sai a lien in favor of the United States." jS^.^- ^- ^- *PP-

TITLE IV—EXCISE TAXES Part I—Tax on Admissions and C a b a r e t s SEC. 401. REMOVAL OF TAX ON FREE ADMISSIONS.

Section 1700(a)(1) (relating to tax on single or season tickets) is 26u*s" C.VTOO (a) hereby amended by striking out the second, fourth, and fifth sentences (i). thereof. SEC. 402. EXEMPTIONS FROM ADMISSIONS TAX. (a)

REINSTATEMENT or

PREWAR

EXEMPTIONS.—Notwithstanding

section 541(b) of the Revenue Act of 1941, the provisions of section 1701 (relating to exemptions from the admissions tax) shall apply to ^ 5 Stat. 7io; 53 Stat. ^6 amounts paid on or after the effective date specified in section 403 of 26 U.S.C. § 1701. this Act for admissions on or after such date. ^ °°*^' (b) AMENDMENT OF SECTION 1701 (a) AND (b).—Subsections (a^ and (b) of section 1701 (relating to exemptions from admissions tax) are hereby amended to read as follows: " (a) OERTAIN RELIGIOUS, EDUCATIONAL, OR CHARITABLE ENTERTAINMENTS, E T C. —

,

"(1) IN GENERAL.—Except as provided in paragraph (2), any admissions all thcf proceeds of which inure— " (A) exclusively to the benefit of— " (i) a church or a convention or association of churches; "(ii) an educational institution which is exempt under section 101(6) or which is an educational institution of a government or political subdivision thereof, if such organization normally maintains a regular faculty and

26u*8 c' §101 (6).