1002
PUBLIC LAW 86-779-SEPT. 14, 1960
[74 S T A T.
tribSt^nt^etc!""" SEC. 7. (a) Section 170 of the Internal Revenue Code of 1954 26 USC 'i7o.* (relating to charitable, etc., contributions and gifts) is amended— (1) by adding at the end of subsection (c) the following newsentence: "For purposes of this section, the term 'charitable contribution' also means an amount treated under subsection (d) as paid for the use of an organization described in paragraph (2), (3), or (4). "; and (2) by redesignating subsections (d) and (e) as subsections (e) and (f), respectively, and by inserting after subsection (c) the following new subsection: " (d) AMOUNTS PAID To MAINTAIN CERTAIN STUDENTS AS MEMBERS OF TAXPAYER'S HOUSEHOLD.—
"(1) IN GENERAL.—Subject to the limitations provided by paragraph (2), amounts paid by the taxpayer to maintain an individual (other than a dependent, as defined in section 152, or a relative of the taxpayer) as a member of his household during the period that such individual is— " (A) a member of the taxpayer's household under a written agreement between the taxpayer and an organization described in paragraph (2), (3), or (4) of subsection (c) to implement a program of the organization to provide educational opportunities for pupils or students in private homes, and " (B) a full-time pupil or student in the twelfth or any lower grade at an educational institution (as defined in section 151(e)(4)) located in the United States, shall be treated as amounts paid for the use of the organization.
26 USC 152.
26 USC 151.
"(2)
LIMITATIONS.—
" (A) AMOUNT.—Paragraph (1) shall apply to amounts paid within the taxable year only to the extent that such amounts do not exceed $50 multiplied by the number of full calendar months during the taxable year which fall within the period described in paragraph (1). For purposes of the preceding sentence, if 15 or more days of a calendar month fall within such period such month shall be considered as a full calendar month. "(B)
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COMPENSATION O REIMBUTISEMENT.—Paragraph (1) R
shall not apply to any amount paid by the taxpayer within the taxable year if the taxpayer receives any money or other property as compensation or reimbursement for maintaining the individual in his household during the period described in paragraph (1). "(3) RELATIVE DEFINED.—For purposes of paragraph (1), the
26 USC 152.
term 'relative of the taxpayer' means an individual who, with respect to the taxpayer, bears any of the relationships described in paragraphs (1) through (8) of section 152(a). "(4) No OTHER AMOUNT ALLOWED AS DEDUCTION.—No deduction
26 USC 162.
shall be allowed under subsection (a) for any amount paid by a taxpayer to maintain an individual as a member of his household under a program described in paragraph (1)(A) except as provided in this subsection." (b) Section 162(b) of the Internal Revenue Code of 1954 (relating to charitable contributions and gifts excepted from trade or business expenses) is amended by inserting after "the percentage limitations," the following: "the dollar limitations,". (c) The amendments made by subsections (a) and (b) shall apply with respect to taxable years beginning after December 31, 1959.
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