Sec. 201(b), Excess Profits Tax Act of 1950, amended Sec. 207(a)(3)(A)(ii), IRC, by striking out "30 per centum" and inserting in lieu thereof "33 per centum". Sec. 213(a), RA of 1950, amended Sec. 211(a)(1) (B), IRC, to read as follows: "(B) CAPITAL GAINS OF ALIENS TEMPORARILY PRESENT IN THE UNITED STATES.-In the case of a nonresident alien individual not engaged in trade or business in the United States, there shall be levied, collected, and paid for each taxable year, in addition to the tax imposed by subparagraph (A)— "(i) if he is present in the United States for a period or periods aggregating less than ninety days during such taxable year-a tax of 30 per centum of the amount by which his gains, derived from sources within the United States, from sales or exchanges of capital assets effected during his presence in the United States exceed his losses, allocable to sources within the United States, from such sales or exchanges effected during such presence; or "(ii) if he is present in the United States for a period or periods aggregating ninety days or more during such taxable year-a tax of 30 per centum of the amount by which his gains, derived from sources within the United States, from sales or exchanges of capital assets effected at any time during such year exceed his fosses, allocable to sources within the United States, from such sales or exchanges effected at any time during such year. For the purposes of this subparagraph, gains and losses shall be taken into account only if, and to the extent that, they would be recognized and taken into account if such individual were engaged in trade or business in the United States, except that such gains and losses shall be computed without regard to the provisions of section 117 (b) and such losses shall be determined without the benefits of the capital loss carry-over provided in section 117 (e). "(C) CROSS REFERENCE.-For inclusion in computation of tax of amount specified in shareholder's consent, see section LAWS 1950, king thereof 1950 POCKET SUPPLEMENT Sec. 213(d), RA of 1950, makes amendment applicable to taxable years beginning after Dec. 31, 1949. 59 Sec. 213(b) (1), RA of 1950, amended Sec. 211(a)(2), "(2) AGGREGATE MORE THAN $15,400.-The taxes imposed by "(A) the aggregate amount received from the sources specified in paragraph (1) (A), plus "(B) the amount, determined in accordance with the provisions of paragraph (1) (B), by which gains from sales or exchanges of capital assets exceed losses from such sales or exchanges, sceed his tes, from sence; or a period ring such Donnt br e United • effected allocable sales or Sec. 221(j)(2), RA of 1950, amended Sec. 211(a)(7), "(7) (A) In the case of any taxable year beginning before the "(B) In the case of any taxable year beginning on or after the effective date specified in section 219, a resident of Puerto Rico shall compute his net earnings from self-employment in the same. manner as a citizen of the United States but without regard to the provisions of section 116 (1) of such code." Sec. 213(b)(2), RA of 1950, amended Sec. 211(c) (1) (3), IRC, to read as follows: "(c) No UNITED STATES BUSINESS OR OFFICE AND GROSS INCOME OF MORE THAN $15,400.-A nonresident alien individual not engaged in trade or business within the United States shall be taxable without regard to the provisions of subsection (a) (1) if during the taxable year the sum of the aggregate amount received from the sources specified in subsection (a) (1) (A), plus the amount (determined in accordance with the provisions of subsection (a) (1) (B)) by which gains from sales or exchanges of capital assets exceed losses from such sales or exchanges, is more than $15,400, except that "(1) The gross income shall include only income from the sources specified in subsection (a) (1) (A) plus any gain (to the extent provided in section 117) from a sale or exchange of a capital asset if such gain would be taken into account were the tax being determined under subsection (a) (1) (B); "(2) The deductions (other than the so-called 'charitable deduction' provided in section 213 (c)) shall be allowed only if and to the extent that they are properly allocable to the gross income from the sources specified in subsection (a) (1) (A), except that any loss from the sale or exchange of a capital asset shall be allowed (to the extent provided in section 117 without the benefit of the capital loss carry-over provided in section 117 (e)) if such loss would be taken into account were the tax being determined under subsection (a) (1) (B); "(3) The tax imposed by this chapter (under sections 11 and 12, or under section 117 (c)) shall, in no case, be less than 30 per centum of the sum of— "(A) the aggregate amount received from the sources specified in subsection (a) (1) (A), plus "(B) the amount, determined in accordance with the provisions of subsection (a) (1) (B), by which gains from sales or exchanges of capital assets exceed losses from such sales or exchanges; and". Sec. 213(d), RA of 1950, makes amendment applicable to taxable years beginning after Dec. 31, 1949. Sec. 213(c), RA of 1950, amended Sec. 217(b), IRC, by striking out "section 211(a)" and inserting in lieu thereof "section 211(a)(1)(A)". Sec. 213(d), RA of 1950, makes amendment applicable to taxable years beginning after Dec. 31, 1949. SECTION 220 - NEW. Sec. 221(d), RA of 1950, amended Supplement H by adding at the end thereof the following: "SEC. 220. ALIEN RESIDENTS OF PUERTO RICO. "(a) No APPLICATION TO CERTAIN ALIEN RESIDENTS OF PUERTO RICO. The provisions of this supplement shall have no application to an alien individual who is a bona fide resident of Puerto Rico during the entire taxable year, and such alien shall be subject to the taxes imposed by sections 11 and 12. (b) CROSS REFERENCE. For exclusion from gross income of income derived from sources within Puerto Rico, see section 116 (1) (1)." Sec. 221(k), RA of 1950, makes amendment applicable to taxable years beginning after Dec. 31, 1950. SECTION 221 - NEW. Sec. 301(c)(5), RA of 1950, amended Supplement H, IRC, by adding at the end thereof the following: "SEC. 221. FOREIGN EDUCATIONAL, CHARITABLE AND CERTAIN OTHER EXEMPT ORGANIZATIONS. "For special provisions relating to foreign educational, charitable and other exempt trusts, see section 421 (d).' Sec. 303, RA of 1950, makes amendment applicable to taxable years beginning after Dec. 31, 1950. Sec. 121(g) (5), RA of 1950, amended Sec. 231(b), IRC, by striking out "section 14 (c) (1)" and inserting in lieu thereof "section 13", and by making said amendment applicable to taxable years beginning after June 30, 1950 and to taxable years beginning on January 1, 1950 and ending on December 31, 1950. SECTION 238 - NEW. Sec. 301(c)(6), RA of 1950, amended Supplement I, IRC, by adding at the end thereof the following: "SEC. 238. FOREIGN EDUCATIONAL, CHARITABLE AND CERTAIN OTHER EXEMPT ORGANIZATIONS. "For special provisions relating to foreign educational, charitable and certain other exempt organizations, see section 421 (d).” Sec. 303, RA of 1950, makes amendment applicable to taxable years beginning after Dec. 31, 1950. SECTION 251(d) - AMENDED. Sec. 221(a), RA of 1950, amended Sec. 251(d), IRC, to read as follows: "(d) DEFINITION.-As used in this section the term 'possession of the United States' does not include the Virgin Islands of the United States, and such term when used with respect to citizens of the United States does not include Puerto Rico." Sec. 221(k), RA of 1950, makes amendment applicable to taxable years beginning after Dec. 31, 1950. |