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TITLE 26-INTERNAL REVENUE CODE Subsec. (a)(4). Pub. L. 94-455, § 212(t(1), added par. (4). Subsec. (b)(5). Pub. L. 94-455. § 1906(b)(13)(A), struck out "or his delegate" following "Secretary". Subsec. (b)(7)(B). Pub. L. 94-455. § 1901(a)(140), struck out "such organization acquiring such proper. ty," preceding "such organization". Subsec. (c). Pub. L. 94-455, § 1906(b)(13)(A), struck out "or his delegate" following "Secretary". 1975-Subsec. (b). Pub. L. 94-81, § 2(a)(1), (2), added reference to par. (7) in par. (3), and added par. (7). 1971-Subsec. (a)(2). Pub. L. 92-178, §303(c)(1), in- cluded reference to section 188 in two instances follow- ing subpar. (D) text. Subsec. (a)(3)(B)(ii), (iii). Pub. L. 92-178, § 104(a)(2), substituted "research facility" for "research or storage facility" in cl. (ii) and added cl. (iII). Subsec. (a)(3)(D). Pub. L. 92-178, § 303(c)(2). includ- ed reference to section 188. 1969-Subsec. (a)(2). Pub. L. 91-172, §§ 212(a)(1), 704(b)(4)(A), (B), added subpar. (C) and inserted refer- ences to sections 169, 185, and 187, and added subpar. (D). Subsec. (a)(3). Pub. L. 91-172, §§ 212(a)(2), 704(b)(4) (C) to (F), struck out "(other than livestock)" follow- ing "means any property" and substituted "section 167 (or subject to the allowance of amortization provided in section 185)" for "section 167" and added subpar. (D). 1964-Subsecs. (a)(2), (3)(C). Pub. L. 88-272 rede. fined "recomputed basis" with respect to elevators or escalators in par. (2), and inserted subpar. (C) In par. (3). EFFECTIVE DATE OF 1976 AMENDMENT Section 212(b)(2) of Pub. L. 94-455 provided that: "The amendment made by this subsection (enacting subsec. (a)(4) of this section] applies to transfers of player contracts in connection with any sale or ex- change of a franchise after December 31, 1975." Amendment of subsecs. (a)(1), (2). (b)(7)(B) by sec- tion 1901(a)(140). (b)3)(K), (11)(D) of Pub. L. 94-455 effective for taxable years ,beginning after Dec. 31, 1976, see section 1901(d) of Pub. L. 94-455, set out as an Effective Date of 1976 Amendment note under sec- tion 2 of this title. Amendment of subsec. (a)(2)(D) by section 1951(c)(2)(C) of Pub. L. 94-455 applicable'to taxable years beginning after Dec. 31, 1976, see section 1951(d) of Pub. L. 94-455, set out as an Effective Date of 1976 Amendment note under section 72 of this title. Amendment of subsec. (a)(2)(D), (3)(D) by section 2122(b)(3)(A), (B), (C) of Pub. L. 94-455 applicable to taxable years beginning after Dec. 31, 1976, and before Jan. 1, 1980, see section 2122(c) of Pub. L. 94-455, set out as an Effective Date note under section 190 of this title. Amendment of subsec. (a)(2)(D), (3)(D) by section 2124(a)(2) of Pub. L. 94-455 applicable with respect to additions to capital account made after June 14, 1976 and before June 15, 1981, see section 2124(a)(4) of Pub. L. 94-455, set out as an Effective Date irote under sec- tion 191 of this title. EFFECTIVE DATE OF 1975 AMENDMENT Amendment by Pub. L. 94-81 applicable to disposi- tions after Dec. 31, 1969, in taxable years ending after such date, with special provision for an election In the case of dispositions occurring before Aug. 9, 1975, see section 2(c) of Pub. L. 94-81, set out as an Effective Date of 1975 Amendment note under section 1250 of this title. EF zcTvz DATE OF 1971 AMENDMENT Amendment of subsecs. (a)(2), (3)(D) of this section by Pub. L. 92-178 applicable to taxable years ending after Dec. 31, 1971, see section 303(d) of Pub. L. 92- 178, set out as an Effective Date of 1971 Amendment note under section 188 of this title. Amendment of subsec. (a)(3)(B) by Pub. L. 92-178 applicable to property described in section 50 of this title relating to restoration of credit, see section 104(h) of Pub. L. 92-178, set out as an Effective Date of 1971 Amendment note under section 48 of this title. EFFEcTIvz DATE OF 1969 AMENDMENT Section 212(a)(3) of Pub. L. 91-172 provided that: "The amendments made by paragraphs (1) and (2) [to this section] shall apply with respect to taxable years beginning after December 31, 1969." Amendment by section 704(b)(4) of Pub. L. 91-172 applicable to taxable years ending after Dec. 31, 1968, see section 704(c) of Pub. L. 91-172, set out as an Ef- fective Date of 1969 Amendment note under section 169 of this title. EFcTivE DATE OF 1964 AMENDMENT Amendment by Pub. L. 88-272 applicable with re- spect to dispositions after Dec. 31, l063, in taxable years ending after such date, see sectlcoi 203(f)(3) of Pub. L. 88-272, set out as an Effective Date of 1964 Amendment note under section 48 of this title. EFFEcTivE DATE Section 13(g) of Pub. L. 87-834 provided that: "The amendments made by this section [enacting this sec- tion and amending sections 167(e), 170, 301, 312. 341. 453, 613 and 751 of this title] (other than the amend- ments made by subsection (c) (enacting section 167(f) of this title, amending sections 179 and 642 of this title, and redesignating subsecs. f) to (h) of section 167 of this title as subsecs. (g) to (i)l) shall apply to taxable years beginning after December 31, 1962. The amendments made by subsection (c) shall apply to tax- able years beginning after December 31, 1961, and ending after the date of the enactment of this Act [Oct. 16, 1962]." SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 57, 163. 167, 169, 170, 191, 301, 312, 341, 453, 465, 512, 613, 617, 751, 1250, 1251, 1252 of this title. § 1246, Gain on foreign investment company stock (a) Treatment of gain as ordinary income (1) General rule In the case of a sale or exchange (or a dis- tribution which, under section 302 or 331, Is treated as an exchange of stock) after Decem- ber 31, 1962, of stock in a foreign corporation which was a foreign investment company (as defined in subsection (b)) at any time during the period during which the taxpayer held such stock, any gain shall be treated as ordi- nary income, to the extent of the taxpayer's ratable share of the earnings and profits of such corporation accumulated for taxable years beginning after December 31, 1962. (2) Ratable share For purposes of this section, the taxpayer's ratable share shall be determined under regu- lations prescribed by the Secretary, but shall include only his ratable share of the accumu- lated earnings and profits of such corpora- tion- (A) for the period during which the tax- payer held such stock, but (B) excluding such earnings and profits attributable to any amount previously in- cluded in the gross income of such taxpayer under section 951 (but only to the extent the inclusion of such amount did not result in an exclusion of any other amount from gross income under section 959). § 1246 Page 698