PUBLIC LAW 85-866-SEPT. 2, 1958
1614
[72 S T A T.
shall be taken into account only to the extent that such amounts do not exceed the maximum limitation provided in subsection (c) which would (but for the provisions of this subsection) apply to the taxpayer for the taxable year; " (B) if the taxpayer has attained the age of 65 before the close of the taxable year raid is disabled, amounts paid by him during the taxable year for his medical care shall be taken into account only to the extent that such aniounts do not exceed $15,000; and " (C) if the spouse of the taxpayer has attained the age of 65 before the close of the taxable year and is disabled, amounts paid by the taxpayer during the taxable year for the medical care of his spouse shall be taken into account only to the extent that such amounts do not exceed $15,000. " (3) MEANING OF DISABLED.—For purposes of paragraph (1),
an individual shall be considered to be disabled if he is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or to be of long-continued and indefinite duration. An individual shall not be considered to be disabled unless he furnishes proof of the existence thereof in such form and manner as the Secretary or his delegate may require. " (4) DETERMINATION OF STAITTS.—For purposes of paragraph
26 USC 213.
26 USC 246.
(1), the determination as to whether the taxpayer or his spouse is disabled shall be made as of the close of the taxable year of the taxpayer, except that if his spouse dies during such taxable year such determination shall be made with respect to his spouse as of the time of such death." (b) TECHNICAL AMENDMENT.—Section 213(c) (relating to maximum limitations on medical deduction) is amended by striking out "The" and inserting in lieu thereof "Except as provided in subsection (g),the". (c) EFFECTIVE DATE.—The amendments made by subsections (a) and (b) shall apply only with respect to taxable years beginning after December 31, 1957. SEC. 18. DEDUCTIONS BY CORPORATIONS FOR DIVIDENDS RECEIVED. (^a) EXCLUSION OF CERTAIN DIVIDENDS.—Section 246 (relating to
rules applying to deductions by corporations for dividends received) is amended by adding at the end thereof the following new subsection: " (c) EXCLUSION OF CERTAIN DIVIDENDS.—
26 USC 243-245.
" (1) IN GENERAL.—No deduction shall be allowed under section 243, 244, or 245, in respect of any dividend on any share of stock— " (A) which is sold or otherwise disposed of in any case in which the taxpayer has held such share'for 15 days or less, or " (B) to the extent that the taxpayer is under an obligation (whether pursuant to a short sale or otherwise) to make corresponding payments with respect to substantially identical stock or securities. "(2)
9 0-DAY RULE I N THE CASE OF CERTAIN PREFERENCE DIVI-
DENDS.—In the case of any stock having preference in dividends, the holding period specified in paragraph (1)(A) shall be 90 days in lieu of 15 days if the taxpayer receives dividends with respect to such stock which are attributable to a period or periods aggregating in excess of 366 days. ' (3) DETERMINATION OF HOLDING PERIODS.—For purposes of
this subsection, in determining the period for which the taxpayer has held any share of stock— " (A) the day of disposition, but not the day of acquisition, shall be taken into account.
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