636
PUBLIC LAW 91-172-DEC. 30, 1969
"'-
Post, p. 678. " ^' ^' " •
[93 5^^
" (1) in the case of a taxable year beginning before Januarv 1 1975— ^ ^' " (A) a tax of 25 percent of the lesser of— " (i) the amount of the subsection (d) gain, or "(ii) the amount of the net section 1201 gain and " (B) a tax of 30 percent (28 percent in the case of a taxable 19*q/• t • ygg^j. beginning after December 31, 1969, and before January 1 1971) of the excess (if any) of the net section 1201 gain over the subsection (d) gain; and " (2) in the case of a taxable year beginning after December 3i 1974, a tax of 30 percent of the net section 1201 gain. ' "(b) OTHER TAXPAYERS.—If for any taxable year a taxpayer other than a corporation has a net section 1201 gain, then, in lieu of the tax imposed by sections 1 and 511, there is hereby imposed a tax (if such tax is less than the tax imposed by such sections) which shall consist of the sum of— "(1) a tax computed on the taxable income reduced by an amount equal to 50 percent of the net section 1201 gain, at the rates and in the manner as if this subsection had not been enacted " (2) a tax of 25 percent of the lesser of— " (A) the amount of the subsection (d) gain, or " (B) the amount of the net section 1201 gain, and "(3) if the amount of the net section 1201 gain exceeds the amount of the subsection (d) gain, a tax computed as provided in subsection (c) on such excess. " (c) COMPUTATION OF TAX ON CAPITAL G A I N I N EXCESS OF SIBSECTioN (d) G A I N. —
"(1) IN GENERAL.—The tax computed for purposes of subsection (b)(3) shall be the amount by which a tax determined under section 1 or 511 on an amount equal to the taxable income (but not less than 50 percent of the net section 1201 gain) for the taxable year exceeds a tax determined under section 1 or 511 on an amount equal to the sum of (A) the amount subject to tax under subsection (b)(1) plus (B) an amount equal to 50 percent of the subsection (d) gain. "(2) LIMITATION.—Notwithstanding paragraph (1), the tax computed for purposes of subsection (b)(3) shall not exceed an amount equal to the following percentage of the excess of the net section 1201 gain over the subsection (d) gain: " (A) 291/^ percent, in the case of a taxable year beginning after December 31, 1969, and before January 1, 1971, or " (B) 321/^ percent, in the case of a taxable year beginning after December 31, 1970, and before January 1, 1972. " (d) SUBSECTION (d) G A I N DEFINED.—For purposes of this section, the term 'subsection (d) gain' means the sum of the long-term capital gains for the taxable year arising— " (1) in the case of amounts received before January 1, 1975, from sales or other dispositions pursuant to binding contracts (other than any gain from a transaction described in section 631 3 ^ 8 Stat. 213, 2g A or 1235) cutered into on or before October 9, 1969, including sales 26 USC 631, or other dispositions the income from which is returned on the 1235. basis and in the manner prescribed in section 453(a)(1), 26 USC 45^^.' " (2) in respect of distributions from a corporation made ^rior to October 10, 1970, which are pursuant to a plan of complete hquidation adopted on or before October 9, 1969, and
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