g3 STAT. 1
PUBLIC LAW 91-172-DEC. 30, 1969
"(8) TRANSITIONAL RULE.—In the case of any amount which, under paragraph (1) and section 1211(b) (as in effect for taxable years beginning before January 1, 1970), is treated as a capital loss in the first taxable year beginning after December 31, 1969, paragraph (1) and section 1211(b) (as in effect for taxable years beginning before January 1, 1970) shall apply (and paragraph (1) and section 1211(b) as in effect for taxable years beginning after December 31, 1969, shall not apply) to the extent such amount exceeds the total of any net capital gains (determined without regard to this subsection) of taxable years beginning after December 31, 1969." (c) CONFORMING AMENDMENT.—Section 1222(9) (defining net capital <^ain) is amended by striking out "In the case of a corporation, the" ancTinserting in lieu thereof "The". (d) EFFECTIVE DATE.—The amendments made by this section shall apply to taxable years beginning after December 31, 1969.
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SEC. 514. LETTERS, MEMORANDUMS, ETC. (a) TREATMENT AS PROPERTY W H I C H I S NOT A CAPITAL ASSET.—
Section 1221(3) (relating to definition of capital asset) is amended to read as follows: "(3) a copyright, a literary, musical, or artistic composition, a letter or memorandum, or similar property, held by— " (A) a taxpayer whose personal efforts created such propert}[, " (B) in the case of a letter, memorandum, or similar property, a taxpayer for whom such property was prepared or proclucecl, or " (C) a taxpayer in whose hands the basis of such property is determined, for purposes of determining gain from a sale or exchange, in whole or part by reference to the basis of such property in the hands of a taxpayer described in subparagraph (A) or (B);". (b) CONFORMING AMENDMENTS.—
(1) Section 341(e)(5)(A) (iv) (relating to definition of subsection (e) asset in the case of collapsible corporations) is amended to read as follows: "(iv) property (unless included under clause (i), (ii), or (iii)) which consists of a copyright, a literary, musical, or artistic composition, a letter or memorandum, or similar property, or any interest in any such property, if the property was created in whole or in part by the personal efforts of, or (in the case of a letter, memorandum, or similar property) was prepared, or produced in whole or in part for, any individual w ho ow ns more than 5 percent in value of the stock of the corporation." (2) Section 1231(b)(1)(C) (relating to definition of property used in the trade or business) is amended by inserting ", a letter or memorandum" before ", or similar property". (c) EFFECTIVE DATE.—The amendments made by this section shall apply to sales and other dispositions occurring after July 25, 1969.
68A Stat. 3 2 1.
72 Stat. 1618.
SEC. 515. TOTAL DISTRIBUTIONS FROM QUALIFIED PENSION, ETC., PLANS. (a) LIMITATION ON CAPITAL GAINS TREATMENT.—
(1) EMPLOYEES'TRUST.—Section 402(a) (relating to taxability of beneficiary of exempt trust) is amended by adding at the end thereof the following new paragraph: "(5) LIMFIATION ON CAPITAL GAINS TREATMENT.—The first
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