498
PUBLIC LAW 183—OCT. 20, 1951
[65 STAT.
of the gross income from the property during the tax a b l e year, e x c l u d i n g from such gross income a n a m o u n t equal to any r e n t s o r r o y a l t i e s p a i d o r i n c u r r e d by the tax p a y e r i n respect of the property. " (b) T E C H N I C A L AMENDMENT. — S o m u c h of paragraph (2) of section 53 Stat45. ^^^^^^ 114 (b) as precedes "discovered by the tax p a y e r after February 28, (2). ' ' 1913" is h e r e by amended to read as f o l l o w s: " (2) DISCOVERY VALUE I N THE CASE o r M I N E S. — I n the case of
Ante,pA97.
mines (except m i n e s in respect of which p e r c e n t a g e d e p l e t i o n i s allowable under paragraph (4) of t h i s s u b s e c t i o n) ". (c) EFFECTIVE D A T E. — T l i e amendments m a d e by t h i s section shall be applicable only w i t h respect to tax a b l e v e a r s b e g i n n i n g after December 31, 1950. SEC. 320. REDEMPTION OF STOCK TO PAY DEATH TAXES. (a)
AMENDMENT OF S E C T I O N 115 (g)
(3). — S e c t i o n 115 (g)
(3)
26 u^s ^' § 115 (g) ( r e l a t i n g to r e d e m p t i o n of stock to p a y death tax e s) is h e r e by amended (3). ' ' ' by striking o u t "50 p e r c e n t u m of the value of the n e t e s t a t e " and inserting i n lieu thereof "35 p e r c e n t u m of the v a l u e of the g r o s s estate". (b) EFFECTIVE D A T E. — The amendment m a d e by subsection (a) shall be applicable to tax a b l e year s e n d i n g on o r after the date of the e n a c t m e n t of t h i s Act, b u t shall a p p l y only to a m o u n t s d i s t r i b u t e d on o r after such date. SEC. 321. EARNED INCOME FROM SOURCES WITHOUT THE UNITED STATES. (a)
E X C L U S I O N F R O M GROSS I N C O M E. — S e c t i o n 116 (a)
( r e l a t i n g to
^u.^s'.c!§ii6(a). e a r n e d income from sources w i t h o u t the United States) is h e r e by amended by striking o u t paragraph s (1) and (2) and inserting in lieu thereof the following: " (1) B O N A FIDE RESIDENT OF FOREIGN C O U N T R Y. — I n the case of
^u^s.^c. § 116 (a) (3).
an i n d i v i d u a l citizen of the United States, w h o establishes to the satisfaction of the Secretary t h a the has been a b o n after e s i d e n t of a foreign c o u n t r y o r c o u n t r i e s for a n u n i n t e r r u p t e d period which includes a n e n t i r e tax a b l e year, a m o u n t s received from sources w i t h o u t the United States (except a m o u n t s p a i d by the United States o r any agency thereof) if such a m o u n t s constitute e a r n e d income ( a s d e n n e d i n paragraph (3)) a t t r i b u t a b l e to such period; b u t such i n d i v i d u a l shall not be allowed as a deduction from his g r o s s income any deductions p r o p e r l y allocable to o r c h a r g e a b l e a g a i n s t a m o u n t s excluded from gross income under this paragraph. " (2) P R E S E N C E I N FOREIGN COUNTRY FOR 17 M O N T H S. — I n the case
of a n i n d i v i d u a l citizen of the United States, w h o during any period of 18 consecutive months is p r e s e n t i n a foreign c o u n t r y o r countries during a t least 510 full d a y s i n such period, a m o u n t s received from sources w i t h o u t the United States (except a m o u n t s p a i d by the United States o r any agency the r e o f) if such a m o u n t s constitute e a r n e d income ( a s defined i n paragraph (3)) a t t r i b u t able to such period; b u t such i n d i v i d u a l shall not be allowed as a deduction from h i s gross income any deductions p r o p e r l y allocable to o r c h a r g e a b l e a g a i n s t a m o u n t s excluded from gross income under t h i s paragraph, " 26U.to^.^§i62i(a) (b) WITHHOLDING OF T A X ON_WAGES.—Section 1621(a)(8)(A) (8)(A). ( r e l a t i n g to definition of w a g e s) is h e r e by amended to read a s f o l l o w s: " (A) for services for a n e m p l o y e r ( other than the United States o r any agency the r e o f) performed i n a foreign c o u n t r y by a citizen of the United States, if a t the t i m e of the payment of such r e m u n e r a t i o n the e m p l o y e r i s r e q u i r e d by the law of any foreign c o u n t r y to w i t h h o l d income tax upon such
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