PUBLIC LAW 94-455—OCT. 4, 1976
90 STAT. 1787
" (1) a tax computed on the taxable income reduced by the amount of the n e t capital gain, at the rates and in the manner as if this subsection h a d not been enacted, plus " (2) a tax of 30 percent of the net capital gain." (B) Section 1201(c) (relating to computation of alternative tax) is amended to read as follows:
< _ 26 USC 1201.
" (c) COMPUTATION OF T A X W H E R E CAPITAL G A I N EXCEEDS $50,000.—
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 capital 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 sum referred to in subsection (b)(2)(A). " ( C H i) Section 1201 is amended by striking out subsection (d) (defining subsection (d) gain) and by redesignating subsection (e) as subsection (d). (ii) Section 1 2 0 1 (b)(2)(A) (relating to alternative tax on noncorporate taxpayers) is amended by striking out " the amount of the subsection (d) g a i n " and inserting in lieu thereof "the sum of the long-term capital gains for the taxable 0 year, b u t not to exceed $50,000 ($25,000 in the case of a married individual filing a separate r e t u r n) ". (iii) Section 1201(b)(3) is amended by striking out "the f amount of the subsection (d) g a i n " and inserting in lieu thereof "the sum referred to in subparagraph (A) ".
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( 1 3 6) AMENDMENTS OF SECTION 1 2 2 2. —
(A) Paragraph (9) of section 1222 (relating to definition of terms applicable to capital gains and losses) is amended to read as follows:
26 USC 1222.
" (9) CAPITAL GAIN N E T INCOME.—The term 'capital gain net
income' means the excess of the gains from sales or exchanges of capital assets over the losses from such sales or exchanges." (B) Paragraph (11) of section 1222 (relating to definition of terms applicable to capital gains and losses) is amended •^•i to read as follows: " ( 1 1) N E T CAPITAL GAIN.—The term 'net capital gain' means "Net capital the excess of the net long-term capital gain for the taxable year gain-" over the net short-term capital loss for such year." (137) AMENDMENT OF SECTION 1233.—Section 1233(c) (relating 26 USC 1233. to certain options to sell) is amended by striking out "the date of enactment of this title " and inserting in lieu thereof " August 16, 1954". (138) AMENDMENT OF SECTION 1237.—Section 1237 (relating
26 USC 1237.
to real property subdivided for sale) is amended by striking out subsection (d) (relating to effective date). (139) REPEAL OF SECTION 1240.—Section 1240 (relating to tax-
26 USC 1240.
ability to employee of certain termination payments) is repealed. (140) AMENDMENT OF SECTION 1245.—Section 1245(b)(7)(B)
(relating to transfers to tax-exempt organization M-here property will be used in unrelated business) is amended by striking out "such organization acquiring such property,". (141) AMENDMENT OF SECTION 1240.—Section 1246(f) (relating to gain on foreign investment company stock) is amended by striking out "beginning after December 31, 1962".
26 USC 1245.
26 USC 1246.
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