78 STAT. ]
PUBLIC LAW 88-272-FEB. 26, 1964
45
to contributions made by him to any organization, then, in applying subparagraph (B) with respect to contributions made by him to such organization during his taxable year for which such election is made and during all his subsequent taxable years, amounts expended by the organization after the close of any of its taxable years and on or before the loth day of the third month following the close of such taxable year shall be treated as expended during such taxable year. "(4) DISQUALIFYING TRANSACTIONS.—An organization shall be an organization referred to in subj^aragraph (B) or (C) of paragraph (2) only if at no time during the period consisting of the organization's taxable year in which the contribution is received, its 3 preceding taxable years, and its 3 succeeding taxable years, such organization— " (A) lends any part of its income or corpus to, " (B) pays compensation (other than reasonable compensation for personal services actually rendered) to, " (C) makes any of its serA'ices available on a preferential basis to, " (D) purchases more than a minimal amount of securities or other property from, or " (E) sells more than a minimal amoinit of securities or other property to, the donor of such contribution, any member of his family (as defified in section 267(c)(4)), any employee of the donor, any 26^us*c*267^* officer or employee of a corporation in which he owns (directly or indirectly) 50 percent or more in value of the outstandhig stock, or any partner or employee of a partnership in which he owns (directly or indirectly) 50 percent or more of the capital interest or profits interest. This paragraph shall not apply to transactions occurring on or before the date of the enactment of the^ Revenue Act of 1964."' (c) 5 - Y K A R CARRYOVER OF CERTAIN M A D E HY I N D IV I D U A L S. —
CirARiTAHLK C O X T R I H I TIONS
(1) IN GENERAL.—Section 170(b) (relating to limitations on amount of deduction for charitable cimtributions) is amended by adding at the end thereof the following new paragraph: "(5) CARRYOVER INDIVIDUALS.
OF
CERTAIN
EXCESS
COXTRIIUTIONS
72 Stat. 1610. 26 USC 170.
BY
" (A) I n the case of an individual, if the amount of charitable contributions described in paragraph (1)(A) payment of which is made within a taxable year (hereinafter in this paragraph referred to as the 'contiibution year') beginning after December 31, 1963. exceeds 30 percent of the taxpayer's adjusted gross income for such year (computed without regard to any net operating loss carryback to such year under section 172), such excess shall be treated as a charitable contribution described in paragraph (1)(A) paid in each of the 5 succeeding taxable years in order of time, but. with respect to any such succeeding taxable year, only to the extent of the lesser of the two following amounts: " (i) the amount by which 30 percent of the taxpayer's adjusted gross income for such succeeding taxable year (cx)mpute(i without regard to any net operating loss carryback to such succeeding taxable year under section 172) exceeds the sum of the charitable contributions describe<l in paragraph (1)(A) payment of which is made by the taxpa3'er within such succeeding taxable year (determined without regard to this subparagraph)
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