642 68A Stat. 340. 26 USC 1314.
PUBLIC LAW 91-172-DEC. 30, 1969
[33 s^^
(8) The last sentence of section 1314(b) (relating to method f adjustment) is amended to read as follows: " I n the case of a adjustment resulting from an increase or decrease in a net ope? ating loss or net capital loss which is carried back to the year of adjustment, interest shall not be collected or paid for any period prior to the close of the taxable year in which the net operatin loss or net capital loss arises." ^ (g) EFFECTIVE DATE.—The amendments made by this section shall apply with respect to net capital losses sustained in taxable years beginning after December 31, 1969. SEC. 513. CAPITAL LOSSES OF INDIVIDUALS. (a)
LIMITATION ON ALLOWANCE OF CAPITAL LOSSES.—Section 1211
(b) (relating to limitation on capital losses of taxpayers other than corporations) is amended to read as follows: "(b)
Post, p. 675.
78 Stat. 99.
OTHER TAXPAYERS.—
"(1) IN GENERAL.—In the case of a taxpayer other than a corporation, losses from sales or exchanges of capital assets shall be allowed only to the extent of the gains from such sales or exchanges, plus (if such losses exceed such gains) whichever of the following is smallest: " (A) the taxable income for the taxable year, " (B) $1,000, or " (C) the sum of— " (i) the excess of the net short-term capital loss over the net long-term capital gain, and " (ii) one-half of the excess of the net long-term capital loss over the net short-term capital gain. "(2) MARRIED INDIVIDUALS.—In the case of a husband or wife Avho files a separate return, the amount specified in paragraph (1)(B) shall be $500 in lieu of $1,000. " (3) COMPUTATION OF TAXABLE INCOME.—For purposes of paragraph (1), taxable income shall be computed without regard to gains or losses from sales or exchanges of capital assets and without regard to the deductions provided in section 151 (relating to personal exemptions) or any deduction in lieu thereof. If the taxpayer elects to pay the optional tax imposed by section 3, 'taxable income' as used in this subsection shall read as 'adjusted gross income'." (b) CAPITAL Loss CARRYOVER.—Section 1212(b) (relating to capital loss carryover of taxpayers other than corporations) is amended by striking out "beginning after December 31, 1963" at the beginning of paragraph (1), by striking out the last sentence of paragraph (bi and by striking out paragraph (2) and inserting in lieu thereof the following new paragraphs: "(2)
- - I;.;
wi^rv
S P E C I A L RULES.—
" (A) For purposes of determining the excess referred to in paragraph (1)(A), an amount equal to the amount allowed for the taxable year under section 1211(b)(1)(A), (B),or (C) shall be treated as a short-term capital gain in such year. " (B) For purposes of determining the excess referred to in paragraph (1)(B), an amount equal to the sum of— " (i) the amount allowed for the taxable year under section 1211(b)(1)(A), (B), o r (C), and "(ii) the excess of the amount described in clause (1)
- ^^'^^ t^® 1"'^^ short-term capital loss (determined without
regard to this subsection) for such year, shall be treated as a short-term capital gain in such year.
�
