1979 TITLE 26.--INTER! propnrticg of a net loss for the entire pericii, determined under the law agiplimble to the second calendar year, which the ~ por- ( fian at such period {ailing within such calendar year is of the e ,e:1ti1‘€p¢1’i0d· - · ·» ‘· · `» _ , { (gy The beneht at this section shall be allowed to-the mem- .1 liars of lan @rtx1crship,_ to an wtate or trust, and to_ insurance ccmpmaics subjeét to the tax imposed by section 243 ci 246; : zmder xregufatious jmzscnjibed by the — Cbinmissionér with the 'J Qppmval of the Secretary; (Feb; .26, ,1926, c. 27, §.206, °44 amt; 17.) · l I » - T “ · t y . ste zmte at écghmhhg ot thismhapter. : ’ ·` _ _ The Revgnue Act at ;924,hcreiu referred to ih setout in Title 26 ; fiS’1‘$RNA!; .R1vmw¤) at the- Code. ,· t Sgcticms 204, 214, 234, 243, and 246 herein referred to are set mit is- ji. 935, 955, 936, 1001, md 1006; respe>ctively, of this supp1emeut¤l.titie. ‘, . ~ _ _ ._ 938. Amount éf tax for Escal year' with _ different ratest-·—” my gk the; taxpayer makes return for-a.pei·i0d` begimxiug in me. Umiepdar year (hereinafter in this subdivision trailed _" first calendar ywrf ") ami ending in tollqwixig calendar year (here- matter in this subdivisiqq called ,f‘ second .calcnda1* _ year ") and the law appliculiilg to the second éalezidar year is- different from the law applicable `tci the Erst mléndar year, u1QlrhiS.t8X undér ' · this titlé fxér the period eudixtg-during the second ca1enda1j.y}aar ` shall be thersxim of : (1) jghé same propbrtlézi of a_ tax_ for the entire periéd, determined under the law appliéqblé to the iirst » ca1eud$r_ year and at the rates for suéh yearQ_ which the portion or such period Tallingv within the calendar year is" of thy entire pcricdi and°(2) the same p1·0§0rtion' of a tax_for gthe » c~¤;ire.pe:i9d, determined uniicxjthe 12;%* applicable t_q'_the second miemlar year and at the rates for` such year, whichw the portion bf swab falling within. tbesecond calendar year is cft.hée¤·tirevperi0d.·t'_ ’ “· -. V (b) It-a.§scal_year of a_ partnership begins in ope calendar war and ends in apcther ca1¢¤dnr.ywr,,aud the law applicable tb the second caléng1ar_,yeur·is‘ ·di¤¢rcnt from the law applicable. . to the §rst_ca1a¤dar yFea1·, then (1)` the rhtes for the haleudar year during which such ymr begins shall apply I to an amsmizt cinch @1't1l£I"§ share of such partnership net income (determined uudér the law dpplicatile to such calendar . year) ‘ vquai_ to the proportion which the Qpartot such iiscui year tall-w ing within- mc}: ,cnle¤da1jryea1·· bchrs to' the tu1l· Qscal. year, and (2) rates for the calendar- year during which suc}; §S@1·§'££1:'·€§d8 shall apply. to up jamoupt of each pa;·tnei·’$ ¤&a¤e ci · such ‘@£CBé1'8h1}). net `income (determined {mder the mw applicable {tb such_¢a1e¤dh1·.yea1·) equal to the tpropqrtioxi which the part of such dw yu:. falling vétthm such calendar rm: bears to the` mil iscal ykgtr. In such cams the part -0t mel; imma subject- to thé rites in ¢Hect . for the most recent caléndqr jms: shall M `addw tie the qt.hc1·_1m:·0mé ·0t the `taxpayer siznbject th such `ratu mad the resulting amount shall be placed ix; the lower bmdrets at the rate, schedxile applicable to such year, and the part ot such irsc0gnc_ subject tb the rates in . e£ect ·tm· the»¤ext_precédi¤g cnicudar year shall be placed hi the next higher, brackets of the m`ta schedule applicable to such } ymr; · t · I _ t - _(c) Any nmmmt; before or after the eudctment_ bt this* Act? 99 amount ot tax imposed for s. Bscal year ·begiur;1ng in 1924 in 1925*by ·Tit10. II at thetReve¤ue Act qi'. 1924`éhnl1 be ezréditedt third the payment ot. the tai imp0Sedfor such Mm! yea1·"by_ this Act; and tt the amount; so paidexcaeds asmunt ci such tax imma! by this Act, the éxéess `sbau be credited or in qéccrdgnce ésdth the provisions Gfsacticu @4. (Feb,M%6, 19%, ci 27, { 207, 44'Stat. 18.) _ l `See¤<>tent ni¤xotthis`:chapt¤r.` x —` ` . _ Title 11 at tht Bévenm Act at .1924, herein mterred tu,` is get out in c. 19 M 26 {luruxn Havasu:) at the Cox. 'Pms · Act herein referred to in set wt thmugiiout this supplemental tme. ` Section -284 }\€I‘%i1l‘1‘E£¢!‘l‘Gd tc ii net mat in { 19% as this supple-_ _· meats! title. ‘ · · · , ~ ‘
uz. REVENUE §939 939. Capital gain; capital lose; capital deductions; ordinary leductions: capital net going eapitsl net loss} ordixtnxfy net iniomet capital sésets; tax-in lien of taxeoimpooeé by sections l51, 952fmembérs of mrtnershim.-———(2i) For the purposes of this°t1tle——" _ , I . . » ’ . _(-1) '1lhe`term "c&pitnl gnln"l means taxable gain from the _ sale onexchnnge of capitol assets consmnntated after December A B1, 1921; ‘- `. - ” - . ° (2) The tertn _‘_‘ c21.pitnl°loss" means deductible l0ss`re·SuIting from the sale or_ exchange`0f_capital assewi . “Q (3) The term -" capital·deductions"’ means sneh deductions ns nre ·a1l0wed‘ by = section 214 for the purpose of Qeomgmtiug not income, and are properly allmoeable to or chargeable against capital assets sold. o1·_ exchanged cloning the taxable year: _ 7 (4) ·Tbe`tet·"m. ‘fordinaty_Hei1t1ctions " means the deductions `allowed by section 214 ·— other than copital losses »:1ndreapito1~ deductions; , ‘ _ . _ J . _- j_ `_ - ·(5) The térm}"_capitnl nef,gain’_‘ means the excess of the total nmotmt of, capital gain over the sum of (A) the capitol dednctions and capitol losses,_'plns (B) the amount, if any, by which the. ordinany ‘ deductions exceed the gross income eom·l ` ifuted without including capital gnin; . I - ‘ (6) The tetm " capital net loss " ngeans the excess of tbesmn of the capital 10sses=plus_the capital deductions overtbe total `mnonnt of‘cnpital‘g£liu_; -· _ . _ l V _ ’ · (7) The term f‘ ordinary net ·income" means the m»t·;m·ome. computed ip accordance with the pi·oyisions_ of this title. after; excluding all- items of capital goin, capital lose, and capitol de— 'ductions; and' - ? .' · ._ _ _ (8)· The term "`capital asseté " means property held by the _taxpaye1•'fo1·· more thantwo years Qwhethefior not connected with his trade or business); but dow not inelndestoek in trade of the rtn xpoyer ot other. pxgoperty of n kind which wonlé properly be lnclnded in the inventory of the taxpayer if on hand nt the close of. the taxable year, or ptoperty held by the taxpayer primarily _{0·1° salewin the coni*se»of his tmnde or bnsi&§ . In. determining the period for which the tnximyer hes held property received on an eichange there shall be inelntled the ` period {mj which he held the property excbéngw, it the provisions of section 204 thie property neceived bas, for the potpose of tletermhxiné gain; or less from n wie or exchnnge, the same `bosls in whole or in part `inlbis bends as the property l exchanged. In d€tB1'miBiBgYtb&'·§lB¥i0d for which the taxpiyer has held property `howefer ncqnired there shall be_inc1nded,_ the period for which snob property was held by any other person, it nnder the provisions of 204 meh p;opex·ty hos.
- torthe purpose of determining gn`ln or lose from at mle or ex-
change, tbe same basis in whole or `in part in bin ba.nds as it
would bave in the hands ot soon other person, `In ®tern:ioi.ng · the period for wbicb the tnnmyer has held stock or secnrftiee received upon a distribution ~ where no gain is to the distributes 1 under the provldons of subdivision {c) og section 203 of this Act or of t°he Bevem1e·Aet of= 1%-1, there shot! be · ineluded the period gfor which he held the etoek or seenrities in; the disttibuting corporation. prior to the receipt ot the etock or securities upon snob distribution. · ‘ . . ‘ 1 (b) In the mee‘ot·¤n taxpayer (other than: za. corporation) who for any taxable`ymbderiyes` a capital not goin, there shall _ (nt the election of the hxwier) `be levied, collected and paid, in lieu of thotaxes imposed by sections 210 and 211 of this title, a ta·x_dete1jm·ine€l__ng`fo1Iows: " · .· _ . . A partial tux shall mst be computed `npou the basis; ot we ‘ ordinarynet income at the totes ata ur the manner provieled in sections 210 and 211, and tbe total tax shall he this amount _·plns_12%—por centmn of the capital net gain. » - " ' _ · e ` (cl In me mso of any `tnxpayer (other than a corporation} _who for any taxable year sustains a zeapltal-not loss;. tlwre nbnll be levied, colylectedyand paid, inllenp of UIQ? taxes ‘impo¤¢e¢l _
