100
^^A |tat. 321. 26 USC 1211.
PUBLIC LAW 88-272-FEB. 26, 1964
"(1) IN GENERAL.—If a taxpayer other than a corporation has a net capital loss for any taxable year beginning after December 31, 1963— " (A) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and " (B) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year. For purposes of this paragraph, in determining such excesses an amount equal to the excess of the sum allowed for the taxable year under section 1211(b) over the gains from sales or exchanges of capital assets (determined without regard to this sentence) shall be treated as a short-term capital gain in such year. " (2) TRANSITIONAL RULE.—In the case of a taxpayer other than a corporation, there shall be treated as a short-term capital loss in the first taxable year beginning after December 31, 1963, anjamount which is treated as a short-term capital loss in such year under this subchapter as in effect immediately before the enactment of the Revenue Act of 1964." (b)
26 USC 1222.
TECHNICAL AMENDMENTS.—
(1) Section 1222(9) (relating to net capital gain) is amended to read as follows: "(9) N E T CAPITAL GAIN.—In the case of a corporation, the term 'net capital gain' means the excess of the gams from sales or exchanges of capital assets over the losses from such sales or exchanges." (2) The second sentence of section 1222(10) (relating to net capital loss) is amended by striking out "For the purpose" and inserting in lieu thereof "In the case of a corporation, for the purpose". (c) EFFECTIVE DATE.—The amendments made by this section shall apply to taxable years beginning after December 31, 1963. SEC. 231. GAIN FROM DISPOSITIONS REALTY. (a)
26 USC 1231^
1249.
[78 STAT.
OF CERTAIN
DEPRECIABLE
G A I N FROM DISPOSITIONS OF CERTAIN DEPRECIABLE REALTY.—
Part IV of subchapter P of chapter 1 (relating to special rules for determining capital gains and losses) is amended by adding at the end thereof the following new section: "SEC. 1250. GAIN FROM DISPOSITIONS OF CERTAIN DEPRECIABLE REALTY. '*(a) GENERAL RULE. — "(1) ORDINARY INCOME.—Except
as otherwise provided in this section, if section 1250 property is disposed of after December 31, 1963, the applicable percentage of the lower of— " (A) the additional depreciation (as defined in subsection (b)(1)) in respect of the property, or '*(B) the excess of— "(i) the amount realized (in the case of a sale, exchange, or involuntary conversion), or the fair market value of such property (in the case of any other disposition), over "(ii) the adjusted basis of such jnoperty, shall be trejited as gain from the sale or exchange of property which is neither a capital asset nor property described in section 1231. Such gain shall be recognized notwithstanding any other provision of this snbtitle. "(2) APPLICABLE PERCENTAGE.—For pinposes of paragraph (1), the term 'applicable percentage^ means 100 percent minus
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