638 Ante, p. 635. 80 Stat. 113. 26 USC 1378.
PUBLIC LAW 91-172-DEC. 30, 1969
[33 g^^
from the amount subject to tax in accordance with seo tion 1201(a)(1)(B), to the extent thereof, and then from the amount subject to tax in accordance with spotiA 1201(a)(1)(A)." "^^ (4) Section 1378 (relating to tax imposed on certain capital gains of an electing small business corporation) is amended: (A) by striking out "25 percent of" in subsection (b) (1 \ and inserting in lieu thereof "the tax, determined as provided " * *> r in section 1201(a), on", ». ' (B) by adding at the end of subsection (b) the followiiiff new sentence: "In applying section 1201(a)(1)(A) and (B^ for purposes of paragraph (1), the $25,000 limitation shall first be deducted from the amount (determined without
- regard to this subsection) subject to tax in accordance with
section 1201(a)(1)(B), to the extent thereof, and then from the amount (determined without regard to this subsection) subject to tax in accordance with section 1201(a)(1)(A)." and (C) by striking out "25 percent of' in subsection (c)(3) and inserting in lieu thereof "a tax, determined as provided in section 1201(a), on", (d) EFFECTIVE DATE.—The amendments made by this section shall apply to taxable years beginning after December 31, 1969. SEC. 512. CAPITAL LOSSES OF CORPORATIONS. (a)
78 Stat. 860.
68A Stat. 63.
THREE-YEAR CARRYBACK OF N E T CAPITAL LOSSES.—Section
1212(a)(1) (relating to capital loss carryover for corporations) is amended to read as follows: " (1) IN GENERAL.—If a corporation has a net capital loss for any taxable year (hereinafter in this paragraph referred to as the 'loss year'), the amount thereof shall be— " (A) a capital loss carryback to each of the 3 taxable years preceding the loss year, but only to the extent— "(1) such loss is not attributable to a foreign expropriation capital loss, and " (ii) the carryback of such loss does not increase or produce a net operating loss (as defined in section 172(c)) for the taxaWc year to wMch it Is being carricd back; and " (B) a capital loss carryover to each of the 5 taxable years (10 taxable years to the extent such loss is attributable to a foreign expropriation capital loss) succeeding the loss year, and shall be treated as a short-term capital loss in each such taxable year. The entire amount of the net capital loss for any taxable year shall be carried to the earliest of the taxable years to which such loss may be carried, and the portion of such loss which shall be carried to each of the other taxable years to which such loss may be carried shall be the excess, if any, of such loss over the total of the net capital gains for each of the prior taxable years to which such loss may be carried. For purposes of the preceding sentence, the net capital gain for any such prior taxable year shall be computed without regard to the net capital loss for the loss year or for any taxable year thereafter. I n the case of any net capital loss which cannot be carried back in full to a preceding taxable year by reason of clause (ii) of subparagraph (A), the net ' capital gain for such prior taxable year shall in no case be treated
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