112
PUBLIC LAW 88-272-FEB. 26, 1%4
[78 STAT.
" (b) Si»KciAL LIMITATIONS ON T A X. — "(1) For limitation on surtax attributable to sales of oil or gas properties, see section 632. "(2) For limitation on tax in case of income of members of Armed Forces on death, see section 692. "(3) For limitation on tax where an individual chooses the benefits of income averaging, see section 1301. "(4) For computation of tax where taxpayer restores substantial amount held under claim of right, see section 1341. "(5) For limitation on surtax attributable to claims against the United States involving acquisitions of property, see section 1347."
(3) The table of parts for subchapter Q of chapter 1 is amended by striking out "Part I. Income attributable to several taxable years." and inserting in lieu thereof "Part I. Income averaging." (g) EFFECTIVE DATE.— (1) GENERAL RULE.—Except as provided in p a r a ^ a p h (2), the
68A Stat. 334. 26 USC 1301.
Ante, p. 105. 26 USC /Sf?** Ante, p. 45.* 26 USC 170. 73 Statr*699^^°'
26 USC 1371.
amendments made by this section shall apply with respect to taxable years beginning after December 31, 1963. (2) INCOME FROM AN EMPLOYMENT.—If, in a taxable year beginning after December 31, 1963, an individual or partnership receives or accrues compensation from an employment (as defined by section 1301(b) of the Internal Revenue Code of 1954 as in effect immediately before the enactment of this Act) and the employment began before February 6, 1963, the tax attributable to such compensation may, at the election of the taxpayer, be computed under the provisions of sections 1301 and 1307 of such Code as in effect immediately before the enactment of this Act. If a taxpayer so elects (at such time and in such manner as the Secretary of the Treasury or his delegate by regulations prescribes), he may not choose for such taxable year the benefits provided by part I of subchapter Q of chapter 1 of such Code (relating to income averaging) as amended by this Act and (^^ ^® elects to have subsection (e) of such section 1307 apply) section 170(b)(5) of such Code as amended by this Act shall not, apply to charitable contributions paid in such taxable year. SEC. 233. SMALL BUSINESS CORPORATIONS. ^^^ OWNERSHIP OF CERTAIN
S TO C K DISREGARDED.
SectioU 1371
(relating to definition of small business corporation) is amended by adding at the end thereof the following new subsection: " (d) OWNERSHIP OF CFJKTAIN STOCK.—For purposes of subsection (a), a corporation shall not be considered a memlber of an affiliated group at any time during any taxable year by reason of the ownership of stock in another corporation if such other corporation— " (1) has not begun business at any time on or after the date of its incorporation and before the close of such taxable year, and "(2) does not have taxable income for the period included within such taxable year." (b) CERTAIN DISTRIBUTIONS o r MONEY AFTFJI CLOSE OP TAXABLE
26 USC 1375.
YEAR.—Section 1375 (relating to special rules applicable to distributions of electing small business corporations) is amended by adding at the end thereof the following new subsection: "(e) CFJITAIN DISTRIBUTIONS AFTER CF^OSE OF TAXABLE YEAR.—
" (1) IN GENERAL.—For purposes of this chapter, if— " (A) a corporation makes a distribution of money to its shareholders on or before the 15th day of the third month
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