# Pub. L. 86-779: changes to the Internal Revenue Code

1960-09-14, 74 Stat. 1009. Source: <https://www.govinfo.gov/link/plaw/86/public/779>.

## Legislative history

- Bill: [H.R. 10960](https://www.congress.gov/bill/86th-congress/house-bill/10960)

## § 11: Tax imposed

- § 11(d): Pub. L. 86–779 inserted “and real estate investment trusts” after “regulated investment companies”.

## § 162: Trade or business expenses

- § 162(b): Pub. L. 86–779, § 7(b), inserted “the dollar limitations,” after “the percentage limitations,”.
- § 162(d), § 162(e): Pub. L. 86–779, § 8(a), added subsec. (d) and redesignated former subsec. (d) as (e).

## § 170: Charitable, etc., contributions and gifts

- § 170(c): Pub. L. 86–779, § 7(a)(1), inserted sentence additionally defining “charitable contribution” for purposes of the section.
- § 170(d), § 170(e), § 170(f): Pub. L. 86–779, § 7(a)(2), added subsec. (d) and redesignated former subsecs. (d) and (e) as (e) and (f), respectively.

## § 180: Expenditures by farmers for fertilizer, etc.

- Enacted 26 U.S.C. § 180.

## § 243: Dividends received by corporations

- § 243(c): Pub. L. 86–779, § 10(g), added par. (3).
- § 243(d): Pub. L. 86–779, § 3(a), added subsec. (d).

## § 263: Capital expenditures

- § 263(a)(1)(D): Pub. L. 86–779 added subpar. (D).

## § 318: Constructive ownership of stock

- § 318(b)(6): Pub. L. 86–779 added par. (6).

## § 443: Returns for a period of less than 12 months

- § 443(d): Pub. L. 86–779 added par. (5).

## § 852: Taxation of regulated investment companies and their shareholders

- § 852(a): Pub. L. 86–779, § 10(b)(2), substituted “this part” for “this subchapter”.
- § 852(b)(3)(C): Pub. L. 86–779, § 10(b)(3), substituted “For purposes of this part, a capital gain dividend is” for “A capital gain dividend means”.

## § 855: Dividends paid by regulated investment company after close of taxable year

- § 855(c): Pub. L. 86–779 substituted “this part” for “this subchapter”.

## § 856: Definition of real estate investment trust

- Enacted 26 U.S.C. § 856.

## § 857: Taxation of real estate investment trusts and their beneficiaries

- Enacted 26 U.S.C. § 857.

## § 858: Dividends paid by real estate investment trust after close of taxable year

- Enacted 26 U.S.C. § 858.

## § 861: Income from sources within the United States

- § 861(a)(2)(C): Pub. L. 86–779 added subpar. (C).

## § 934: Limitation on reduction in income tax liability incurred to the Virgin Islands

- Enacted 26 U.S.C. § 934.

## § 1054: Certain stock of Federal National Mortgage Association

- Enacted 26 U.S.C. § 1054.

## § 1063: Cross references


## § 1504: Definitions

- § 1504(b)(6): Pub. L. 86–779 inserted “and real estate investment trusts” after “Regulated investment companies”.

## § 2106: Taxable estate

- § 2106(a)(3): Pub. L. 86–779 designated existing provisions as subpar. (A) and added subpar. (B).

## § 2209: Certain residents of possessions considered nonresidents not citizens of the United States

- Enacted 26 U.S.C. § 2209.

## § 2501: Imposition of tax

- § 2501(a): Pub. L. 86–779, § 4(d)(2), struck out “who is” before “not a citizen”.
- § 2501(c), § 2501(d): Pub. L. 86–779, § 4(d)(1), added subsec. (c) and redesignated former subsec. (c) as (d).

## § 5701: Rate of tax

- § 5701(b): Pub. L. 86–779 substituted “imposed on cigars as a commodity” for “imposed on the retail sales of cigars”.