Page:United States Statutes at Large Volume 83.djvu/649

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[83 STAT. 621]
[83 STAT. 621]
PUBLIC LAW 91-000—MMMM. DD, 1969

83 STAT. ]

PUBLIC LAW 91-172-DEC. 30, 1969

year provided by subparagraph (A) shall be reduced by 11/2 percentage points for each 1 percentage point of such difference. If, for the taxable year, the percentage of the assets of such taxpayer which are assets described in section 7701(a) (19) (C) is less than 60 percent (50 x)ercent for a taxable year beginning before 1973 in the case of a mutual savings bank), this paragraph shall not apply. "(C)

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EEDUCTION FOR AMOUNTS REFERRED TO I N PARAGRAPH

(1)(A).—The amount determined under subparagraph (A) shall be reduced by that portion of the amount referred to in paragraph (1)(A) for the taxable year (not in excess of 100 percent) which bears the same ratio to such amount as (i) 18 percent (28 percent in the case of mutual savings banks) bears to (ii) the percentage of the assets of the taxpayer for such year which are not assets described in section 7701(a) (19)(C). " (D) OVERALL LIMITATION ON PARAGRAPH.—The amount determined under this paragraph shall not exceed the amount necessary to increase the balance at the close of the taxable year of the reserve for losses on qualifying real property loans to 6 percent of such loans outstanding at such time. 1.?

621

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" (E) COMPUTATION OF TAXABLE INCOME.—For purposes of

this paragraph, taxable income shall be computed— "(i) by excluding from gross income any amount included therein by reason of subsection (f), T.! "(ii) without regard to any deduction allowable for any addition to the reserve for bad debts, " (iii) by excluding from gross income an amount equal to the net gain for the taxable year arising from the sale or exchange of stock of a corporation or of obligations ' • the interest on which is excludable from gross income under section 103, "(iv) by excluding from gross income an amount equal to the lesser of % of the net long-term capital gain for

i."

the taxable year or % of the net long-term capital gain -iifor the taxable year from the sale or exchange of prop's, erty other than property described in clause (iii), and h, "(v) by excluding from gross income dividends with ^,-£. respect to which a deduction is allowable by part VIII of subchapter B, reduced by an amount equal to the applicable percentage (determined mider subparagraphs (A) •t,, and (B)) of the dividends received deduction (determined without regard to section 596) for the taxable year. " (3) PERCENTAGE METHOD.—The amount determined under this paragraph to be a reasonable addition to the reserv^e for losses on qualifying real property loans shall be computed in the same manner as is provided with respect to additions to the reserves for losses on loans of banks under section 585(b)(2), reduced by the amount referred to in paragraph (1)(A) for the taxable year. " (4) EXPERIENCE METHOD.—The amount determined under this paragraph for the taxable year shall be computed in the same manner as is provided with respect to additions to the reserves for losses on loans of banks under section 585(b)(3). "(5)

DETERMINATION OF RESERVE FOR PERCENTAGE METHOD.—

For purposes of paragraph (3), the amount deemed to be the balance of the reserve for losses on loans at the beginning of the

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Ante, p. 616.