83 STAT. ]
PUBLIC LAW 9M72~DEC. 30, 1969
557
" (B) EXCEPTIONS.—Subparagraph (A) shall not apply to a contribution of— " (i) a remainder interest in a personal residence or farm, or "(ii) an undivided portion of the taxpayer's entire interest in property. '(4)
VALUATION OF REMAINDER INTEREST IN REAL PROPERTY.—
For purposes of this section, in determining the value of a remainder interest in real property, depreciation (computed on the straight line method) and depletion of such property shall be taken into account, and such value shall be discounted at a rate of 6 percent per annum, except that the Secretary or his delegate may prescribe a different rate. "(5) KEDUCTION FOR CERTAIN INTEREST.—If, in connection with any charitable contribution, a liability is assumed by the recipient or by any other person, or if a charitable contribution is of property which is subject to a liability, then, to the extent necessary to avoid the duplication of amounts, the amount taken into account for purposes of this section as the amount of the charitable contribution— " (A) shall be reduced for interest (i) which has been paid (or is to be paid) by the taxpayer, (ii) which is attributable to the liability, and (iii) which is attributable to any period after the making of the contribution, and " (B) in the case of a bond, shall be further reduced for interest (i) which has been paid (or is to be paid) by the taxpayer on indebtedness incurred or continued to purchase or carry such bond, and (ii) which is attributable to any period before the making of the contribution. The reduction pursuant to subparagraph (B) shall not exceed the interest (including interest equivalent) on the bond which is attributable to any period before the making of the contribution and which is not (under the taxpayer's method of accounting) includible in the gross income of the taxpayer for any taxable year. For purposes of this paragraph, the term 'bond' means any bond, debenture, note, or certificate or other evidence of indebtedness. " (6) PARTIAL REDUCTION OF UNLIMITED DEDUCTION.—
" (A) IN GENERAL.—If the limitations in subsections (b)(1) (A) and (B) do not apply because of the application of subsection (b)(1)(C), the amount otherwise allowable as a deduction under subsection (a) shall be reduced by the amount by which the taxpayer's taxable income computed without regard to this subparagraph is less than the transitional income percentage (determined under subparagraph (C)) of the taxpayer's adjusted gross income. However, in no case shall a taxpayer's deduction under this section be reduced below the amount allowable as a deduction under this section without the applicability of subsection (b)(1)(C). " (B) TRANSITIONAL DEDUCTION PERCENTAGE.—For purposes of applying subsection (b)(1)(C), the term 'transitional deduction percentage'means— " (i) in the case of a taxable year beginning before 1970, 90 percent, and "(ii) in the case of a taxable year beginning in— 1970 197lII_I_I__IIIII_II 1972lI_I"I_I"I_Z_I_I 1973TarmstroBot (talk)"I"__I~ 1974~2~ II Z ~ II _ I
80 percent 74 percent 68 percent 62 percent 56 percent.
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