95 STAT. 186
PUBLIC LAW 97-34—AUG. 13, 1981 SEC. 102. 20-PERCENT MAXIMUM RATE ON NET CAPITAL GAIN FOR PORTION OF 1981.
26 USC 1201 note. 26 USC 1.
(a) IN GENERAL.—If for any taxable year ending after June 9, 1981, and beginning before January 1, 1982, a taxpayer other than a corporation has quahfied net capital gain, then the tax imposed under section 1 of the Internal Revenue Code of 1954 for such taxable year shall be equal to the lesser of— (1) the tax imposed under such section determined without regard to this subsection, or (2) the sum of— (A) the tax imposed under such section on the excess of— (i) the taxable income of the taxpayer, over (ii) 40 percent of the qualified net capital gain of the taxpayer, and (B) 20 percent of the qualified net capital gain. (b) APPLICATION WITH ALTERNATIVE MINIMUM TAX.—
(1) IN GENERAL.—If subsection (a) applies to any taxpayer for any taxable year, then the amount determined under section 55(a)(1) of the Internal Revenue Code of 1954 for such taxable year shall be equal to the lesser of— (A) the amount determined under such section 55(a)(1) determined without regard to this subsection, or (B) the sum of— (i) the amount which would be determined under such section 55(a)(l) if the alternative minimum taxable income was the excess of— (I) the alternative minimum taxable income (within the meaning of section 55(b)(l) of such Code) of the taxpayer, over (II) the qualified net capital gain of the taxpayer, and (ii) 20 percent of the qualified net capital gain. (2) No CREDITS ALLOWABLE.—For purposes of section 55(c) of
such Code, no credit allowable under subpart A of part IV of subchapter A of chapter 1 of such Code (other than section 33(a) of such Clode) shall be allowable against the amount described in paragraph (l)(B)(ii). (c) QUALIFIED N E T CAPITAL GAIN.—
(1) IN GENERAL.—For purposes of this section, the term "qualified net capital gain" means the lesser of— (A) the net capital gain for the taxable year, or (B) the net capital gain for the taxable year taking into account only gain or loss from sales or exchanges occurring after June 9, 1981. (2) N E T CAPITAL GAIN.—For purposes of this subsection, the term "net capital gain" has the meaning given such term by section 1222(11) of the Internal Revenue Code of 1954. (d) SPECIAL RULE FOR PASS-THRU ENTITIES.—
(1) IN GENERAL.—In applying subsections (a), (b), and (c) with respect to any pass-thru entity, the determination of when a sale or exchange has occurred shall be made at the entity level. (2) PASS-THRU ENTITY DEFINED.—For purposes of paragraph (1), the term "pass-thru entity" means— (A) a regulated investment company, (B) a real estate investment trust, (C) an electing small business corporation, (D) a partnership, (E) an estate or trust, and
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