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TITLE 26-INTERNAL REVENUE CODE determination of whether property is property described in subsection (c) or is property eligi- ble to be distributed without recognition of gain under section 1101(b)(1) made under the Bank Holding Company Act as if such Act did not contain clause (ii) of section 4(c) of such Act. Any election under this subsection shall apply to all property described in subsection (c), or to all property eligible to be distributed without recognition of gain under section 1101(b)(1), as the case may be, and shall be made at such time and in such manner as the Secretary or his dele- gate may by regulations prescribe. Any such election, once made, shall be irrevocable. REFERENCES IN TEXT The Bank Holding Company Act of 1956, referred to in subsec. (b)(2), is act May 9, 1956, ch. 240, 70 Stat. 133, as amended, which is classified principally to chapter 17 (§ 1841 et seq.) of Title 12, Banks and Bank- Ing. Section 2 of such Act, referred to in subsec. (a) is classified to section 1841 of Title 12. Section 4 of such Act, referred to in subsec. (c). is classified to section 1843 of Title 12. For complete classification of this Act to the Code, see Short Title note set out under section 1841 of Title 12 and Tables volume. SAVINGS CLAUSE See section 11 of act May 9, 1956, set out as a note under section 1841 of Title 12, Banks and Banking. SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 1102, 6158 of this title. [§1111. Repealed. Pub. L. 94-455, title XIX, § 1901(a)(134), Oct. 4,1976, 90 Stat. 1786] Section, added Pub. L. 87-403, § l(a), Feb. 2, 1962, 76 Stat. 4, related to distribution of stock pursuant to order enforcing the antitrust laws. Subchapter P-Capital Gains in 4 Losses Part I. Treatment of capital gains. II. Treatment of capital losses. III. General rules for determining capital gains and losses. IV. Special rules for determining capital gains and losses. SUBCHAPTER REFnzR TO IN OTHER SECTIONS This subehapter is referred to in sections 822, 832, 1011, 1012, 1016 of this title. PART I-TREATMENT OF CAPITAL GAINS Sec. 1201. Alternative tax. 1202. Deduction for capital gains. § 1201. Alternative tax (a) Corporations If for any taxable year a corporation has a net capital gain, then, in lieu of the tax im- posed by sections 11, 511, 821(a) or (c), and 831(a), there is hereby imposed a tax (if such tax is less than the tax imposed by such sec- tions) which shall consist of the sum of- (1) a tax computed on the taxable income reduced by the amount of the net capital gain, at the rates and in the manner as if this subsection had not been enacted, plus (2) a tax of 30 percent of the net capital gain. (b) Other taxpayers If for any tagable year a taxpayer other than a corporation has a net capital gain, then, in lieu of the tax imposed by sections 1 and 511, there is hereby imposed a tax (if such tax is less than the tax imposed by such sections) which shall consist of the sum of- (1) a tax computed on the taxable income reduced by an amount equal to 50 percent of the net capital gain, at the rates and in the manner as if this subsection had not been en- acted, (2) a tax of 25 percent of the lesser of- (A) the sum of the long-term capital gains for the taxable year, but not to exceed $50,000 ($25,000 in the case of a married in- dividual filing a separate return), or (B) the amount of the net capital gain, and (3) if the amount of the net capital gain ex- ceeds the sum referred to In subparagraph (A), a tax computed as provided in subsection (c) on such excess. (c) Computation of tax where capital gain exceeds $50,000 The tax computed for purposes of subsection (b)(3) shall be the amount by which a tax de- termined under section 1 or 511 on an amount equal to the taxable income (but not less than 50 percent of the net capital gain) for the tax- able year exceeds a tax determined under sec- tion 1 or 511 on an amount equal to the sum of (A) the amount subject to tax under subsection (b)(1) plus (B) an amount equal to 50 percent of the sum referred to in subsection (b)(2)(A). (d) Cross references For computation of the alternative tax- (l) in the case of life insurance companies, see section 802(a)(2); (2) In the case of regulated investment companies and their shareholders, see section 852(b)(3)(A) and (D); and (3) In the case of real estate investment trusts, see sec. tion 857(b)(3)(A). (Aug. 16, 1954, ch. 736, 68A Stat. 320; Mar. 13, 1956, ch. 83, § 5(7), 70 Stat. 49; June 25, 1959, Pub. L. 86-69, § 3(f)(2), 73 Stat. 140; Oct. 16, 1962, Pub. L. 87-834, § 8(g)(3), 76 Stat. 999; Dec. 30, 1969, Pub. L. 91-172, title V, §511(b), 83 Stat. 635; Oct. 4, 1976, Pub. L. 94-455, title XIX, § 1901(a)(135), (b)(33)(L), 90 Stat. 1786, 1801.) AMENDMENTS 1976--ubsec. (a). Pub. L. 94-455, § 1901(a)(135)(A), substituted "net capital gain" for "net section 1201. gain" in three instances, incorporated existing text in provisions designated par. (1), deleted prior par. (1) provision adding to the tax in the case of a taxable year beginning before Jan. 1, 1975- (A) a tax of 25 percent of the lesser of- (1) the amount of the subsec. (d) gain, or i0) the amount of the net section 1201 gain, and (B) a tax of 30 percent (28 percent in the case of a taxable year beginning after Dec. 31, 1969, and before Jan. 1, 1971) of the excess (if any) of the net section 1201 gain over the subsec. (d) gain, and de- leted from par. (2) the introductory phrase "in the case of a taxable year beginning after December 31, 1974,". Subsec. (b). Pub. L. 94-455, § 1901(b)(33)(L), substi- tuted "net capital gain" for "net section 1201 gain" In introductory clause and in par. (1). Subsec. (b)(2)(A). Pub. L. 94-455, § 1901(a)(135)(C)(ii), substituted "the sum of the long. 91111 Page 674