552
PUBLIC LAW 91-172-DEC. 30, 1969
[83 STAT
"(iii) A t the election of the taxpayer (made at such time and in such manner as the Secretary or his dele^at prescribes by regulations), subsection (e)(1) shall appi^ to all contributions of capital gain property (to whic{ subsection (e)(1)(B) does not otherwise apply) ^^y by the taxpayer during the taxable year. If such an eW tion is made, clauses (i) and (ii) shall not apply to con! tributions of capital gain property made during the taxable year, and, in applying subsection (d)(1) for such •w: r^ 5 i taxable year with respect to contributions of capital gain property made in any prior contribution year for which ' an election was not made under this clause, such contributions shall be reduced as if subsection (e)(1) ^^(j applied to such contributions in the year in which made "(iv) For purposes of this subparagraph, the term 'capital gain property' means, with respect to any contribution, any capital asset the sale of which at its fair market value at the time of the contribution would have resulted in gain which would have been long-term capital gain. For purposes of the preceding sentence, any property which is property used in the trade or business (as ^?^^?*f*-325. defined in section 1231(b)) shall be treated as a capital asset. " (E) CERTAIN PRIVATE FOUNDATIONS,—The private foundations referred to in subparagraph (A) (vii) and subsection (e)(1)(B) a r e " (i) a private operating foundation (as defined in secAnfa, p. 502. tion 4942(j)(3)), "(ii) any other private foundation (as defined in secAnte, p. 496. tion 509(a)) which, not later than the 15th day of the third month after the close of the foundation's taxable year in which contributions are received, makes qualifying distributions (as defined in section 4942(g), without regard to paragraph (3) thereof), which are treated, after the application of section 4942(g)(3), as distributions out of corpus (in accordance with section 4942(h)) in an amount equal to 100 percent of such contributions, and with respect to which the taxpayer obtains adequate records or other sufficient evidence from the foundation showing that the foundation made such qualifying distributions, and "(iii) a private foundation all of the contributions to which are pooled in a common fund and which would be described in section 509(a)(3) but for the right of any substantial contributor (hereafter in this clause called 'donor') or his spouse to designate annually the recipients, from among organizations described in paragraph (1) of section 509(a), of the income attributable to the donor's contribution to the fund and to direct (by deed or by will) the payment, to an organization described in such paragraph (1), of the corpus in the common fund attributable to the donor's contribution; but this clause shall apply
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only if all of the income of the common fund is required to be (and is) distributed to one or more organizations described in such paragraph (1) not later than the 15tn day of the third month after the close of the taxable year in which the income is realized by the fund and only ii
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