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TITLE 26-INTERNAL REVENUE CODE base period income which would result from combining his income and deductions for such year-" *(A) with the income and deductions for such year of the individual who is his spouse for the computation year, or -(B) if greater, with the income and deduc- tions ,for such year of the individual who Was his spouse for such base period year.. (3) Community income attributable to services In the case of amounts which constitute earned income (within the meaning of section 911(b)) and are community income under community property laws applicable to such income- (A) the amount taken into account for any base period year for purposes of deter- mining base period income shall not be less than the amount which would be taken into account if such amounts did not constitute community income, and (B) the amount taken into account for purposes of determining taxable income for the computation year shall not exceed the amount which would be taken-into account If such amounts did not constitute commu- nity Income. (4) Marital status For purposes of this subsection, section 143(a) shall apply in determining whether an individual is married for any taxable year. (d) Dollar limitations in case of joint returns In the case of a Joint return, the $3,000 figure contained in section 1301 shall be applied to the aggregate a.veragable Income. (e) Treatment of certain other items (1) Section 72(m)(5) Section 72(m)(5) (relating to penalties ap- plicable to certain amounts received by owner-employees) shall be applied as if this part had not been enacted. (2) Other items : Except as otherwise provided in this part, the order and manner in which items of income or limitations on tax shall be taken into account in computing the tax imposed by this chapter on the income of any eligible in- dividual to whom section 1301 applies for any computation year shall be determined under regulations prescribed by the Secretary. (f) Short taxable'years In the case of any computation year or base period year which is a short taxable year, this part shall be applied in the manner provided in regulations prescribed by the Secretary. (Added Pub. Y. 88-272, title II, § 232(a), Feb. 26, 1964, 78 Stat. 108, and amended Pub. L. 91-172, title III, § 311(c), (d)(2), title V, § 515(c)(4), title VIII' §§ 802(c)(5), 803(d)(8), Dec. 30, 1969, 83 Stat. 587, 646, 678, 684; Pub. L. 93-406, title II, § 2005(c)(6), Sept. 2, 1974, 88 Stat. 991; Pub. L. 94-455, title III, § 302(c), title V, § 501(b)(7), title!XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1555,-1559, 1834.) PRIOR PROVISIONS A prior section 1304, act Aug. 11, 1955, ch. 804, § 1(a), 69 Stat. 688, related to compensatory damages for patent infringement. AMENDMENTS 1976-Subsec. (b). Pub. L. 94-455, §§ 302(c), 501(b)(7), redesignated pars. (2) to (5) as (1) to (4), respectively, and in par. (4) as so redesignated, substituted "person- al service income" for "earned income". Former par. (1), which made reference to section 3 of this title, was struck out. Subsec. (e)(2). Pub. L. 94-455, § 1906(b)(13)(A), struck out "or his delegate" following "Secretary". Subsec. (f). Pub. L. 94-455, § 1906(b)(13)(A), struck out "or his delegate" following "Secretary". 1974--Subsec. (b). Pub. L. 93-406 struck out par. (2) which had made reference to section 72(n)(2) (relating to limitation of tax in case of total distribution) and redesignated pars. (3) to (6) as pars. (2) to (5), respec- tively. 1969--Subsec. (b)(1). Pub. L. 91-172, § 803(d)(8), struck out "if adjusted gross income is less than $5,000" in the parenthetical material. Subsec. (b)(2). Pub. L. 91-172, § 515(c)(4), substituted "(relating to limitation of tax in case of total distribu- tion)" for "(relating to limitation of tax in case of cer- tain distributions with respect to contributions by self employed individuals)". Subsec. (b)(5), (6). Pub. L. 91-172, §311(c), added pars. (5) and (6). Subsee. (c)(1). Pub. L. 91-172, § 311(d)(2)(B), (C), de- leted reference to par. (4) in the text preceding subpar. (A) and substituted par. "3" for "4" in subpar. (B), respectively. Subsec. (c)(3) to (5). Pub. L. 91-172, § 311(d)(2)(A), (D), struck out par. (3) describing minimum base period capital gain net income and redesignated former pars. (4) and (5) as (3) and (4), and struck out in subpar. (B) of redesignated par. (3) "adjusted" pre- ceding "taxable income", respectively. Subsec. (c)(4). Pub. L. 91-172, § 802(c)(5), substituted reference to section 143(a) for reference to section 143. Subsec. (d). Pub. L. 91-172, § 311(d)(2)(E), struck out ", and the $3,000 figure contained in section 1302(b)(2) (C) shall be applied to the aggregate net income" fol- lowing "aggregate averagable income". Subsec. (e). Pub. L. 91-172, § 311(d)(2)(F), redesignat- ed former subsec. (f) as (e), deleting former par. (1) provisions respecting treatment of gift or wagering income and redesignating former pars. (2) and (3) as (1) and (2). respectively, and struck out former subsec. (e) which prescribed special rules where there are cap- ital gains, providing in former par. (1) for treatment of capital gains in computation year and in former par. (2) for computation of alternative tax. Subsec. (f). Pub. L. 91-172, § 311(d)(2)(0), redesig- nated former subsec. (g) as (M. Former subsec, (f) re- designated (e). Subsec. (g). Pub. L. 91-172, § 311(d)(2)(G), redesig- nated subsec. (g) as f). Em crxv DATE OF 1976 AmwnmEENT Amendment of subsec. (b) by section 302(c) of Pub. L. 94-455 applicable to taxable years beginning after Dec. 31, 1976, see section 302(d) of Pub. L. 94-455, set out as an Effective Date of 1976 Amendment note under section 1348 of this title. Amendment of subsec. (b) by section 501(b)(7) of Pub. L. 94-455 applicable to taxable years beginning after Dec. 31, 1975, see section 508 of Pub. L. 94-455, set out as an Effective Date of 1976 Amendment note under section 3 of this title. EF'crIv DATE oF 1974 AzsNwmrr Amendment by Pub. L. 93-406 applicable only with respect to distributions or payments made after Dec. 31, 1974, in taxable years beginning after Dec. 31, 1973, see section 2005(d) of Pub. L. 93-406, set out as an Effective Date of 1974 Amendment note under sec- tion 402 of this title. Em'cTwE DATE oF 1969 Amsmmw r Amendment of subsec. (b)(1) by section 803(d)(8) of Pub. L. 91-172 applicable to taxable years beginning Page 7.21 § 1304