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PUBLIC LAW 183—OCT. 20, 1951
[65 STAT.
(2) AMENDMENT OP SECTION i i x (a).—Paragraphs (2) and (4) 26U.^8.c.§n7(a). of section 117(a) (relating to definitions of shoit-term capital gain and long-term capital gain) are each hereby amended by striking out net income" and inserting in lieu thereof "gross income". (3) AMENDMENT OP SECTION in (j).—Section 117(j)(2)(A) 26U.^s.^^§ii7(]) (relating to gains and losses from involuntary conversion and (2)(A). from the sale or exchange of certain property used in the trade or business) is hereby amended to read as follows: " (A) I n determining under this p a r a ^ a p h whether gains exceed losses, the gains described therein shall be included only if and to the extent taken into account in computing gross income and the losses described therein shall be included only if and to the extent taken into account in computing net 26 u^8c§ 117(d) income, except that subsection (d) shall not apply." 53 Stat.'867 ' (4) AMENDMENT OF SECTION 122 (d)(4).—Section 122(d)(4) (4^ • • -51 ( (relating to computation of net operating loss deduction) is hereby amended to read as follows: "(4) The amount deductible on account of losses from sales or exchanges of capital assets shall not exceed the amount includible on account of gains from such sales or exchanges. The deducArue,v.i99. fioii provided in section 23 (ee) shall not be allowed." 26u^s*c• § 162(a) (^) AMENDMENT OF SECTION 162 (a).—Section 162(a) (relating to computation of net income of estates and trusts) is hereby amended by striking out the semicolon and inserting in lieu thereof a period and the following: "Where any amount of the income so paid or set aside is attributable to gain from the sale or exchange of capital assets held for more than six months, proper adjustment of the deduction otherwise allowable under this subsection shall be made for any deduction allowable to the ^n<e,p.499. tr^gt under section 23 (ee);". (d) EFFECTIVE DATE.—The amendments made by this section shall be applicable only with respect to taxable years beginning on or after the date of the enactment of this Act. I n determining under section 26u^s'c" § 1 7 (e) ^^^ (^) ^^ ^^® Internal Revenue Code the amount of the carryover 1 ' to a taxable year beginning on or after such date, of the capital loss for a taxable year beginning before such date, such amendments shall not affect the computation of the amount of the net capital loss or of the net capital gain for any taxable year beginning before such date. SEC. 323. SALE OF LAND WITH UNHARVESTED CROP. 26U.*s.^a§ii7(i). (^) TREATMENT OF G A I N OR Loss.—Section 117(j) (relating to sale Supra. or exchange of property used in the trade or business) is hereby amended— (1) By inserting immediately before the period at the end of the second sentence of paragraph (1) thereof the following: "and unharvested crops to which paragraph (3) is applicable"; and (2) By adding at the end thereof a new paragraph to read as follows: " (3) SALE OF LAND WITH UNHARVESTED CROP.—In the case of an \ unharvested crop on land used in the trade or business and held for more than 6 months, if the crop and the land are sold or exchanged (or compulsorily or involuntarily converted as described in paragraph (2)) at the same time and to the same person, the crop shall be considered as 'property used in the trade or business'." (b)
26U.^s.c" §24. ^n<e, p. 487.
TREATMENT OF DEDUCTIONS.— (1) AMENDMENT OF SECTION 24.—Section
24 (relating to items not deductible) is hereby amended by adding at the end thereof a new subsection to read as follows:
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