65 STAT.]
PUBLIC LAW 183—OCT. 20, 1951
483
provisions of section 51(f), the tax imposed by section 400 shall ^"'*' PP •*^^' *^'be computed without regard to the status of the taxpayer as a head of a household." (c) EFFECTIVE DATE.—The amendments made by this section shall be applicable only with respect to taxable years beginning after October 31, 1951. SEC. 302. PAYMENTS TO BENEFICIARIES OF DECEASED EMPLOYEES. (a) AMENDMENT OF SECTION 22 (b)(1).—Section 22(b)(1) (relat- g ff^|/^- j ^ (b) ing to exclusion of life insurance proceeds from gross income) is (phereby amended to read as follows: "(1)
L I F E INSURANCE, ETC.—Amounts received—
" (A) under a life insurance contract, paid by reason of the death of the insured; or " (B) under a contract of an employer providing for the payment of such amounts to the beneficiaries of an employee, paid by reason of the death of the employee; whether in a single sum or otherwise (but if such amounts are held by the insurer, or the employer, under an agreement to pay interest thereon, the interest payments shall be included in gross income). The aggregate of the amounts excludible under subparagraph (B) by all the beneficiaries of the employee under all such contracts of any one employer may not exceed $5,000." (b) EFFECTIVE DATE.—The amendment made by this section shall be applicable with respect to taxable years beginning after December 31, 1950. SEC. 303. JOINT AND SURVIVOR ANNUITIES. (a) AMENDMENT OF SECTION 22 (b)(2).—Section 22(b)(2) is 1^ u.Vc. § 22 (b) amended by adding at the end thereof the following new subpara- (2)graph: " (C) Joint and Survivor Annuities.—For purposes of subparagraphs (A) and (B) of this paragraph, where amounts are received by a surviving annuitant under a joint and survivor's annuity contract and the basis of such survivor annuitant's interest is determined under section 113(a) (5) the consideration paid for such survivor's annuity shall be considered to be an amount equal to such basis." (b) AMENDMENT OF SECTION 113 (a)(5).—Section 113(a)(5) is gfr*1-.c; §ii3(a) amended by adding at the end thereof the following: " For the pur- (s). poses of this paragraph, the survivor's interest in a joint and survivor's annuity shall be considered to be property 'acquired by bequest, devise, or inheritance' from the decedent if the death of the decedent was after December 31, 1950, and if the value of any part of such interest was required to be included in determining the value of the decedent's gross estate under section 811." ^ u.*s. c^'s su. (c) EFFECTIVE DATES.—The amendments made by this section shall be applicable to taxable years ending after December 31, 1950. SEC. 304. INCOME FROM DISCHARGE OF INDEBTEDNESS. (a) AMENDMENT OF SECTION 22 (b)(9).—Effective with respect to 53 Stat. 875. 26 discharges of indebtedness occurring within taxable years ending after (»)'• U.S.C. § 22 (b) Deceml>er 31, 1950, section 22(b)(9) (relating to income from discharge of indebtedness) is hereby amended (1) by striking out "if the taxpayer makes and files a t the time of filing the return, in such manner as the Commissioner, with the approval of the Secretary, by regulations prescribes, its consent" and inserting in lieu thereof "if the taxpayer, at such time and in such manner as the Secretary by regulations prescribes, makes and files its consent", and (2) by striking out the last sentence thereof.
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