Pub. L. 85-866 Sep. 2, 1958

72 Stat. 1606 · Changed 100 sections of the Code

Bill H.R. 8381

§ 75 Dealers in tax-exempt securities

  • (a) Pub. L. 85–866, § 2(a)(2), (3), struck out “short-term” each place it appeared, and inserted sentence to provide that…
  • (b)(1) Pub. L. 85–866, § 2(a)(1), substituted “municipal bond” for “short-term municipal bond”, designated former subpars. (A)…

§ 101 Certain death benefits

  • (b) Pub. L. 85–866 substituted “This subparagraph shall not apply to total distributions payable (as defined in section…

§ 152 Dependent defined

  • (a) Pub. L. 85–866, § 4(a), inserted “(other than an individual who at any time during the taxable year was the spouse…
  • (b)(3) Pub. L. 85–866, § 4(b), among other changes, struck out provision that “dependent” does not include any individual who…
  • (b) Pub. L. 85–866, § 4(c), added par. (5).

§ 162 Trade or business expenses

  • (c) (d) Pub. L. 85–866, § 5(a), added subsec. (c) and redesignated former subsec. (c) as (d).

§ 164 Taxes

  • (f) (g) Pub. L. 85–866, § 6(a), added subsec. (f) and redesignated former subsec. (f) as (g).

§ 165 Losses

  • (g)(3)(B) Pub. L. 85–866, § 7, substituted “rental of” for “rental from”.
  • (h)(3) (h)(4) Pub. L. 85–866, § 57(c)(1), added pars. (3) and (4).
  • (h)(5) Pub. L. 85–866, § 202(a), added par. (5).

§ 166 Bad debts

  • (d)(2)(A) Pub. L. 85–866 substituted “a trade or business of the taxpayer” for “a taxpayer’s trade or business”.

§ 167 Depreciation

  • (d) Pub. L. 85–866 inserted “certified mail or” before “registered mail”.

§ 170 Charitable, etc., contributions and gifts

  • (b)(1)(C) Pub. L. 85–866, § 10(a), inserted sentence allowing substitution, in lieu of amount of tax paid during year, amount of…
  • (b) Pub. L. 85–866, § 11, added par. (3).
  • (b) Pub. L. 85–866, § 12, added par. (4).

§ 171 Amortizable bond premium

  • (b)(1)(B) Pub. L. 85–866, § 13(a)(1), substituted “, in the case of any bond other than a bond to which clause (ii) or (iii)…
  • (b)(2) Pub. L. 85–866, § 13(a)(2), substituted “In the case of a bond to which paragraph (1)(B)(ii) or (iii) applies and which…

§ 172 Net operating loss deduction

  • (b) Pub. L. 85–866, § 203(a), substituted “1957” for “1953”, and “3” for “2” in par. (1), and substituted “subsection (i)”…
  • (f) Pub. L. 85–866, § 14(a), added pars. (3) and (4).
  • (g) Pub. L. 85–866, § 14(b), added par. (3) and redesignated former par. (3) as (4).
  • § 172 Pub. L. 85–866, §§ 64(b), 203(b), added subsecs. (h) and (i) and redesignated former subsec. (h) as (j).

§ 178 Amortization of cost of acquiring a lease

§ 179 Election to expense certain depreciable business assets

§ 213 Medical, dental, etc., expenses

  • (c) Pub. L. 85–866, § 17(b), substituted “Except as provided in subsection (g), the” for “The”.
  • (d)(2)(A) Pub. L. 85–866, § 16, struck out “claimed or” before “allowed”.
  • § 213 Pub. L. 85–866, § 17(A), added subsec. (g).

§ 243 Dividends received by corporations

  • (a) Pub. L. 85–866, § 57(b)(1), inserted “(other than a small business investment company operating under the Small…
  • (b) (c) Pub. L. 85–866, § 57(b)(2), (3), added subsec. (b), redesignated former subsec. (b) as (c), and substituted…

§ 246 Rules applying to deductions for dividends received

  • (b)(1) Pub. L. 85–866, § 57(c)(2), substituted “243(a)” for “243” wherever appearing.
  • (c) Pub. L. 85–866, § 18(a), added subsec. (c).

§ 358 Basis to distributees

§ 381 Carryovers in certain corporate acquisitions

  • (c)(21) Pub. L. 85–866 added par. (21).

§ 403 Taxation of employee annuities

  • (a)(1) Pub. L. 85–866, § 23(b), substituted “which meets the requirements of section 404(a)(2) (whether or not the employer…
  • (b) (c) § 403 Pub. L. 85–866, § 23(a), added subsec. (b), redesignated former subsec. (b) as (c), and added subsec. (d).

§ 404 Deduction for contributions of an employer to an employees’ trust or annuity plan and compensation under a deferred-payment plan

  • (a) Pub. L. 85–866 substituted “income); but, if” for “income) but if” preceding par. (1).

§ 421 General rules

  • (a) Pub. L. 85–866, § 25, inserted sentence authorizing substitution of “grantor corporation” or “corporation issuing or…
  • (d)(1) Pub. L. 85–866, § 26(a)(1), substituted “in the case of a variable price option” for “in case the purchase price of the…
  • (d) Pub. L. 85–866, § 26(a)(2), added par. (7).

§ 455 Prepaid subscription income

§ 481 Adjustments required by changes in method of accounting

  • (a)(2) Pub. L. 85–866, § 29(a)(1), inserted “unless the adjustment is attributable to a change in the method of accounting…
  • (b)(1) Pub. L. 85–866, § 29(b)(1)–(3), inserted “, other than the amount of such adjustments to which paragraph (4) or (5)…
  • (b)(2) Pub. L. 85–866, § 29(b)(1), (4), inserted “other than the amount of such adjustments to which paragraph (4) or (5)…
  • (b)(3)(A) Pub. L. 85–866, § 29(b)(5), substituted “paragraph (1) or (2)” for “paragraph (2)”, wherever appearing.
  • (b) Pub. L. 85–866, § 29(a)(2), added pars. (4) to (6).

§ 503 Requirements for exemption

  • § 503 Pub. L. 85–866, § 30(a), added subsec. (h).
  • § 503 Pub. L. 85–866, § 30(b), added subsec. (i).

§ 534 Burden of proof

  • (b) Pub. L. 85–866 inserted “certified mail or” before “registered mail”.

§ 535 Accumulated taxable income

  • (b)(2) Pub. L. 85–866, § 31(a), struck out “the limitation in” after “without regard to”.
  • (b)(6)(B) Pub. L. 85–866, § 31(a), substituted “in taxable income the excess of the net long-term capital gain for the taxable…
  • (c)(2) (c)(3) Pub. L. 85–866, § 205(a), substituted “$100,000” for “$60,000”.

§ 545 Undistributed personal holding company income

  • (b)(2) Pub. L. 85–866, § 32(a), substituted in first sentence “, but in computing such deduction the limitations in section…
  • (b)(4) Pub. L. 85–866, § 32(b), inserted “computed without the deductions provided in part VIII (except section 248) of…

§ 582 Bad debts, losses, and gains with respect to securities held by financial institutions

  • (c) Pub. L. 85–866 struck out “with interest coupons or in registered form,” before “exceed the gains”.

§ 611 Allowance of deduction for depletion

  • § 611 Pub. L. 85–866 substituted “devisees” for “devises”.

§ 613 Percentage depletion

  • (d) Pub. L. 85–866 added subsec. (d).

§ 614 Definition of property

  • (b)(4) Pub. L. 85–866, § 37(a), added par. (4).
  • (c) (d) (e) Pub. L. 85–866, § 37(b)–(d), added subsecs. (c) and (d), redesignated former subsec. (c) as (e), and substituted in…

§ 851 Definition of regulated investment company

  • (e)(1) Pub. L. 85–866, § 38(a), substituted “not earlier than 60 days” for “not less than 60 days” in first sentence.
  • (e)(2) Pub. L. 85–866, § 38(b), substituted “issuer” for “issues”.

§ 852 Taxation of regulated investment companies and their shareholders

  • (a) Pub. L. 85–866, § 101(a), inserted “(other than subsection (c) of this section)”.
  • (b)(4) Pub. L. 85–866, § 39(a), added par. (4).
  • (c) Pub. L. 85–866, § 101(b), inserted sentence defining regulated investment company.

§ 871 Tax on nonresident alien individuals

  • (a)(1) Pub. L. 85–866, § 40(a), inserted “section 403(a)(2),” after “section 402(a)(2),”.
  • (b) Pub. L. 85–866, § 41(a), inserted last par. covering former provisions of par. (3), which was struck out by the…

§ 904 Limitation on credit

  • (c) Pub. L. 85–866 added subsec. (c).

§ 905 Applicable rules

  • (b) Pub. L. 85–866 inserted sentence deeming recipient of a royalty or other amount for use of copyright, patent, and other…

§ 911 Citizens or residents of the United States living abroad

  • (c) Pub. L. 85–866 added subsec. (c).

§ 1015 Basis of property acquired by gifts and transfers in trust

  • (d) Pub. L. 85–866 added subsec. (d).

§ 1016 Adjustments to basis

  • (a)(6) Pub. L. 85–866, § 2(b), struck out “short-term” before “municipal bond”.
  • (a)(18) Pub. L. 85–866, § 64(d)(2), added par. (18).

§ 1031 Exchange of real property held for productive use or investment

  • (d) Pub. L. 85–866 inserted in first sentence a comma between “exchanged” and “decreased” and “or decreased in the amount…

§ 1033 Involuntary conversions

  • (a)(2) Pub. L. 85–866, § 45, inserted provision defining “control”.
  • (g) (h) Pub. L. 85–866, § 46(a), added subsec. (g) and redesignated former subsec. (g) as (h).

§ 1053 Property acquired before March 1, 1913

  • § 1053 Pub. L. 85–866 substituted “subtitle” for “part”.

§ 1231 Property used in the trade or business and involuntary conversions

  • (a) Pub. L. 85–866 inserted provision respecting casualty losses sustained upon certain uninsured property.

§ 1233 Gains and losses from short sales

  • (a) Pub. L. 85–866, § 52(b), struck out “, other than a hedging transaction in commodity futures,” after “sale of property”.
  • (e)(4) Pub. L. 85–866, § 52(a), added par. (4).
  • (g) Pub. L. 85–866, § 52(b), added subsec. (g).

§ 1234 Options to buy or sell

  • § 1234 Pub. L. 85–866 amended section generally and among other changes provided in subsec. (a) that gain or loss resulting…

§ 1235 Sale or exchange of patents

  • (d) Pub. L. 85–866 substituted provisions set out as subsec. (d) for provisions reading “Subsection (a) shall not apply to…

§ 1237 Real property subdivided for sale

  • (a)(1) Pub. L. 85–866 substituted “and, in the same taxable year” for “or, in the same taxable year”.

§ 1239 Gain from sale of depreciable property between certain related taxpayers

  • (c) Pub. L. 85–866 added subsec. (c).

§ 1242 Losses on small business investment company stock

§ 1243 Loss of small business investment company

§ 1244 Losses on small business stock

§ 1312 Circumstances of adjustment

  • (6) (7) Pub. L. 85–866 added par. (6) and redesignated former par. (6) as (7).

§ 1314 Amount and method of adjustment

  • (c) Pub. L. 85–866 substituted in second sentence “The” for “Other than in the case of an adjustment resulting from a…

§ 1341 Computation of tax where taxpayer restores substantial amount held under claim of right

  • (a) Pub. L. 85–866, § 60(a), inserted “and subchapter E of chapter 2 of such code” in last sentence.
  • (b)(2) Pub. L. 85–866, § 60(b), (c), in second sentence inserted “with respect to rates” and inserted “, or by an order of a…
  • (b)(3) Pub. L. 85–866, § 60(d), added par. (3).

§ 1441 Withholding of tax on nonresident aliens

  • (b) (c)(5) Pub. L. 85–866 inserted “section 403(a)(2),” after “section 402(a)(2),”.

§ 1504 Definitions

  • (b) Pub. L. 85–866 added par. (8).

§ 2014 Credit for foreign death taxes

  • (f) Pub. L. 85–866 added subsec. (f).

§ 2015 Credit for death taxes on remainders

  • § 2015 Pub. L. 85–866 substituted “the time for payment of the tax imposed by section 2001 or 2101 as postponed and extended…

§ 2039 Annuities

  • § 2039 Pub. L. 85–866, § 67(a), inserted “(4), (5), and (6)” after “section 401(a)(3)”.
  • § 2039 Pub. L. 85–866, § 23(e), added par. (3), inserted “or under contract described in paragraph (3)” in second sentence of…

§ 2053 Expenses, indebtedness, and taxes

  • (d)(1) Pub. L. 85–866 struck out “or any possession of the United States,” after “District of Columbia,”.

§ 2055 Transfers for public, charitable, and religious uses

  • (e) Pub. L. 85–866 substituted “503” for “504”.

§ 2106 Taxable estate

  • (a)(2)(E) Pub. L. 85–866 substituted “503” for “504”.

§ 2208 Certain residents of possessions considered citizens of the United States

§ 2501 Imposition of tax

  • (b) Pub. L. 85–866, § 102(b), added subsec. (b) and redesignated former subsec. (b) as (c).
  • (c) Pub. L. 85–866, § 102(b), redesignated former subsec. (b) as (c) and Pub. L. 85–866, § 43(b), made the heading read in…

§ 2522 Charitable and similar gifts

  • (c) Pub. L. 85–866 substituted “503” for “504”.

§ 3121 Definitions

  • (l)(3) Pub. L. 85–866 substituted “by” for “be” in heading.

§ 3122 Federal service

  • § 3122 Pub. L. 85–866 substituted “section” for “subsection” wherever appearing.

§ 3504 Acts to be performed by agents

  • § 3504 Pub. L. 85–866 substituted “title” for “subtitle” in first sentence.

§ 6012 Persons required to make returns of income

  • (c) (d) Pub. L. 85–866 added subsec. (c) and redesignated former subsec. (c) as (d).

§ 6013 Joint returns of income tax by husband and wife

  • (b)(2)(C) Pub. L. 85–866 substituted “section 6213” for “such section”.

§ 6033 Returns by exempt organizations

  • (b)(8) Pub. L. 85–866 added par. (8).

§ 6037 Return of S corporation

§ 6040 Cross references

    § 6104 Publicity of information required from certain exempt organizations and certain trusts

    • § 6104 Pub. L. 85–866 designated existing provisions as subsec. (b) and added subsec. (a).

    § 6161 Extension of time for paying tax

    • (a)(2) Pub. L. 85–866 inserted provisions allowing Secretary or his delegate to extend time for payment for reasonable period…

    § 6163 Extension of time for payment of estate tax on value of reversionary or remainder interest in property

    • (b) (c) Pub. L. 85–866 added subsec. (b) and redesignated former subsec. (b) as (c).

    § 6164 Extension of time for payment of taxes by corporations expecting carrybacks

    • (d)(2) Pub. L. 85–866 inserted “certified mail or” before “registered mail”.

    § 6212 Notice of deficiency

    • (a) Pub. L. 85–866, § 89(b), inserted “certified mail or” before “registered mail”.
    • (b)(1) Pub. L. 85–866, § 76, substituted “subtitle A or chapter 12” for “chapter 1 or 12” and “subtitle A, chapter 12,” for…
    • (b)(2) Pub. L. 85–866, § 89(b), inserted “certified mail or” before “registered mail”.

    § 6325 Release of lien or discharge of property

    • (a)(1) Pub. L. 85–866, § 77(1), substituted “or” for “,” after “satisfied” and struck out “, or, in the case of the estate tax…
    • (c) Pub. L. 85–866, § 77(2), added subsec. (c) and redesignated former subsec. (c) as (d).
    • (d) Pub. L. 85–866. § 77(2), (3), redesignated former subsec. (c) as (d) and in heading and text struck out “partial”…
    • (e) Pub. L. 85–866, § 77(2), redesignated former subsec. (d) as (e).

    § 6338 Certificate of sale; deed of real property

    • (c) Pub. L. 85–866 struck out “district” before “attorney”.

    § 6339 Legal effect of certificate of sale of personal property and deed of real property

    • (b)(2) Pub. L. 85–866 substituted “as” for “of” after “Deed” in heading.

    § 6501 Limitations on assessment and collection

    • (d) Pub. L. 85–866, § 80(a), (b), substituted in first sentence “subsection (c), (e), or (f)” for “subsection (c)”…
    • (g)(2) Pub. L. 85–866, § 81(a), substituted “organization” for “corporation” wherever appearing.
    • (h) (i) Pub. L. 85–866, § 81(b), added subsec. (h) and redesignated former subsec. (h) as (i).

    § 6503 Suspension of running of period of limitation

    • (d) Pub. L. 85–866 struck out “assessment or” after “period of limitations for” and inserted “or under the provisions of…

    § 6504 Cross references

    • § 6504 Pub. L. 85–866 added par. (15).

    § 6511 Limitations on credit or refund

    • (a) Pub. L. 85–866, § 82(a), struck out from first sentence “required to be” after “3 years from the time the return was”…
    • (b)(2)(A) Pub. L. 85–866, § 82(b), substituted “Limit where claim not filed within 3-year period” for “Limit to amount paid…
    • (b)(2)(B) Pub. L. 85–866, § 82(c), substituted “Limit where claim not filed within 3-year period” for “Limit to amount paid…
    • (d)(2)(A) Pub. L. 85–866, § 82(d), substituted in first sentence “15th day of the 40th month (or 39th month, in the case of a…

    § 6532 Periods of limitation on suits

    • (a)(1) (a)(4) Pub. L. 85–866 inserted “certified mail or” before “registered mail” wherever appearing.

    § 6601 Interest on underpayment, nonpayment, or extensions of time for payment, of tax

    • (b) Pub. L. 85–866, §§ 66(c), 206(e), inserted reference to section 6166, and substituted “if the time for payment of an…
    • (g) (h) (i) (j) Pub. L. 85–866, §§ 83(a)(1), 84(a), added subsecs. (g) and (h) and redesignated former subsecs. (g) and (h) as (h) and…

    § 6611 Interest on overpayments

    • (b)(1) Pub. L. 85–866, § 83(b), struck out “, but if the amount against which the credit is taken is an additional assessment…
    • (c) Pub. L. 85–866, § 83(c), repealed subsec. (c) which defined “additional assessment”.
    • (g) (h) Pub. L. 85–866, § 42(b), added subsec. (g) and redesignated former subsec. (g) as (h).

    § 6652 Failure to file certain information returns, registration statements, etc.

    • (a) Pub. L. 85–866 substituted “section 6042(1)” for “section 6042” and “(upon notice and demand by the Secretary or his…

    § 6653 Failure to pay stamp tax

    • § 6653 Pub. L. 85–866, inserted “on or” after “such return was filed”.

    § 6851 Termination assessments of income tax

    • (d) Pub. L. 85–866 designated existing provisions as par. (1), inserted opening provisions, and added par. (2).

    § 6871 Claims for income, estate, gift, and certain excise taxes in receivership proceedings, etc.

    • (a) Pub. L. 85–866, § 88(a), substituted “the filing or (where approval is required by the Bankruptcy Act) the approval of…
    • (b) Pub. L. 85–866, § 88(b), substituted “the filing or (where approval is required by the Bankruptcy Act) the approval of…

    § 7213 Unauthorized disclosure of information

    • (c) (d) Pub. L. 85–866 added subsec. (c) and redesignated former subsec. (c) as (d).

    § 7324 Special disposition of perishable goods

    • (3) Pub. L. 85–866 struck out “district” before “attorney”.

    § 7325 Personal property valued at $100,000 or less

    • § 7325 Pub. L. 85–866 struck out “district” before “attorney” in par. (3).

    § 7422 Civil actions for refund

    • (f)(2) Pub. L. 85–866 struck out “district” before “attorneys”.

    § 7455 Service of process

    • § 7455 Pub. L. 85–866 inserted “certified mail or” before “registered mail”.

    § 7502 Timely mailing treated as timely filing and paying

    • (c) Pub. L. 85–866 designated existing provisions as par. (1) and added par. (2).

    § 7513 Reproduction of returns and other documents

    § 7514 Authority to prescribe or modify seals