Page:United States Statutes at Large Volume 54 Part 1.djvu/1032

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PUBLIC LAWS-CH. 757-OCT. 8, 1940 Taxable years after liquidation, etc. 53 Stat. 38 . 26 U. 8. 0., Supp. v, i 112 (b) (6). Two or more ex- changes in same tax- able year. Ante, p. 996. Ante, p. 997. 53 Stat. 16, 867. 26 U. S. C., Supp. V, 23. Pos!, p. 999. "(5) TAXABLE YEARS AFTER LIQUIDATION IN CASE OF CORPORATION RECEIVING PROPERTY UNDER SECTION 112 (b) (6). -Upon the receipt by a corporation during any taxable year under this subchapter of property in complete liquidation of another corporation, gain or loss upon which is not recognized by reason of section 112 (b) (6), the highest bracket amount of the corporation receiving such property for any taxable year after the liquidation is completed shall be an amount equal to its highest bracket amount imme- diately preceding the completion of the liquidation increased, but in no case to an amount above $500,000, by an amount equal to the highest bracket amount of such other corporation imme- diately preceding the completion of such liquidation, if pre- viously and after the beginning of the first taxable year under this subchapter of the corporation receiving such property such corporation was a transferor upon an exchange with respect to which such other corporation was a transferee. "(d) HIGHEST BRACKET AMOUNT IN CASE OF Two OR MoRE EXCHANGES IN SAME TAXABIE YEAR.- "(1) If a transferor upon an exchange is in the same taxable year involved in more than one exchange (either as transferor or transferee), its highest bracket amount for such taxable year shall be the amount determined under subsection (b) (1) with respect to the last exchange in such taxable year. Its highest bracket amount immediately preceding any exchange in such taxable year subsequent to the first exchange therein shall be the amount computed under subsection (b) (1) with respect to the immediately preceding exchange as if the taxable year closed on the day of such subsequent exchange. "(2) If a transferee upon an exchange is in the same taxable year involved in more than one exchange (either as transferee or transferor), its highest bracket amount for such taxable year shall be the amount determined under subsection (c) (1) with respect to the last exchange in such taxable year. Its highest bracket amount immediately preceding any exchange in such taxable year subsequent to the first exchange therein shall be the amount computed under subsection (c) (1) with respect to the immediately preceding exchange as if the taxable year closed on the day of such subsequent exchange. "(3) If a transferor or transferee upon an exchange is in the same taxable year involved in more than one exchange (either as transferor or transferee), its highest bracket amount for any taxable year after the taxable year in which such exchanges took place shall be the amount computed under subsection (b) (2), (3), or (4), or (c) (2), (3), (4), or (5), as the case may be, with respect to the last such exchange." TITLE III-AMORTIZATION DEDUCTION SEC. 301. ALLOWANCE OF AMORTIZATION DEDUCTION. Section 23 of the Internal Revenue Code is amended by inserting at the end thereof the following new subsection: "(t) AMORTIZATION DEDrUCTIoN.-T he deduction for amortization provided in section 124." SEC. 302. COMPUTATION OF AMORTIZATION DEDUCTION. 26 Stat. S7upp The Internal Revenue Code is amended by inserting after section v. . 123. 123 the following new section: [54 STAT. 998