88 STAT. ]
PUBLIC LAW 93-625-JAN. 3, 1975
2117
in section 11. For purposes of this subsection, the surtax exemption provided by section 11(d) shall not be allowed. "(2)
ALTERNATIVE TAX IN CASE or CAPITAL GAINS.—If for
any
taxable year any political organization has a net section 1201 gain, then, in lieu of the tax imposed by paragraph (1), there is hereby imposed a tax (if such a tax is less than the tax imposed by paragraph (1)) which shall consist of the sum of— " (A) a partial tax, computed as provided by paragraph (1), on the political organization taxable income determined by reducing such income by the amount of such gain, and " (B) an amount determined as provided in section 1201 (a) on such gain. "(c)
26 USC 11,
26 USC 1201.
POLITICAL ORGANIZATION TAXABLE INCOME DEFINED.— "(1) TAXABLE INCOME DEFINED.—For purposes of this
section, the political organization taxable income of any organization for any taxable year is an amount equal to the excess (if any) of— " (A) the gross income for the taxable year (excluding any exempt function income), over " (B) the deductions allowed by this chapter which are directly connected with the production of the gross income (excluding exempt function income), computed with the modifications provided in paragraph (2). " (2) MODIFICATIONS.—For purposes of this subsection— " (A) there shall be allowed a specific deduction of $100, " (B) no net operating loss deduction shall be allowed under section 172, and ^6 USC 172. " (C) no deduction shall be allowed under part VIII of subchapter B (relating to special deductions for 26 USC 241. corporations). "(3) EXEMPT FUNCTION INCOME.—For purposes of this subsection, the term 'exempt function income' means any amount "Exempt func received as— _ _ tion income." " (A) a contribution of money or other property, " (B) membership dues, a membership fee or assessment from a member of the political organization, or " (C) proceeds from a political fundraising or entertainment event, or proceeds from the sale of political campaign materials, which are not received in the ordinary course of any trade or business, to the extent such amount is segregated for use only for the exempt function of the political organization. "(d)
CERTAIN USES NOT TREATED AS INCOME TO CANDIDATE.—For
purposes of this title, if any political organization— "(1) contributes any amount to or for the use of any political organization which is treated as exempt from tax under subsection (a) of this section, " (2) contributes any amount to or for the use of any organization described in paragraph (1) or (2) of section 509(a) which is exempt from tax under section 501(a), or "(3) deposits any amount in the general fund of the Treasury or in the general fund of any State or local government, such amount shall be treated as an amount not diverted for the personal use of the candidate or any other person. No deduction shall be allowed under this title for the contribution or deposit of any amount described in the preceding sentence.
38-194 O - 76 - 51 Pt. 2
^^ "^^ ^°^26 USC 501.
�
