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TITLE 26-INTERNAL REVENUE CODE rations beginning after Dec. 31, 1970, see section 531(d) of Pub. L. 91-172, set out as an Effective Date note under section 1379 of this title. EFFECTIVE DATE OF 1964 AMENDMENT Section 213(d) of Pub. L. 88-272 provided that: "The amendments made by subsections (a) [adding section 217, redesignating former section 217 as 218, and amending analysis preceding section 211 of this title] and (b) [to this section] shall apply to expenses in- curred after December 31, 1963, in taxable years ending after such date. The amendment made by sub- section (c) [to section 3401 of this title] shall apply with respect to remuneration paid after the seventh day following the date of the enactment of this Act [Feb. 26, 1964]." EFFECTIVE DATE OF 1962 AMENDMENT Amendment by Pub. L. 87-792 applicable to taxable years beginning after Dec. 31, 1962, see section 8 of Pub. L. 87-792, set out as an Effective Date of 1962 Amendments note under section 37 of this title. CROSS REFERENCES Lessee, coal disposed with retained economic inter- est, see section 631 of this title. Percentage allowed for charitable, etc., contribu- tions, see section 170 of this title. Standard deduction- Generally, see section 141 of this title. Election, see section 144 of this title. SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 1348, 3402 of this title; title 18 section 3575; title 21 section 849. § 63. Taxable income defined (a) General rule Except as provided in subsection (b), for pur- poses of this subtitle the term "taxable income" means gross income, minus the deductions al- lowed by this chapter, other than the standard deduction allowed by part IV (see. 141 and fol- lowing). (b) Individuals electing standard deduction In the case of an individual electing under section 144 to use the standard deduction pro- vided in part IV (see. 141 and following), for purposes of this subtitle the term "taxable income" means adjusted gross income, minus- (1) such standard deduction, and (2) the deductions for personal exemptions provided in section 151. (Aug. 16, 1954, ch. 736, 68A Stat. 18.) CROSS REFERENCES Deductions- Additional itemized deductions for individuals, see section 211 et seq. of this title. Deductions for personal exemptions, see section 151 et seq. of this title. Itemized deductions for individuals and corpora. tions, see section 161 et seq. of this title. Special deductions for corporations, see section 241 et seq. of this title. Standard deduction referred to in this section, amount of, see section 141 of this title. Gross income- Defined, see section 61 of this title. Items specifically included in gross income, see sec- tion 71 et seq. of this title. Sale or exchange of residence, see section 1034 of this title. Tax imposed, see section 1 of this title. SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 2, 161, 211, 1034 of this title. § 64. Ordinary income defined For purposes of this subtitle, the term "ordi- nary income" includes any gain from the sale or exchange of property which is neither a cap- ital asset nor property described in section 1231(b). Any gain from the sale or exchange of property which is treated or considered, under other provisions of this subtitle, as "ordinary income" shall be treated as gain from the sale or exchange of property which is neither a cap- ital asset nor property described in section 1231(b). (Added Pub. L. 94-455, title XIX, § 1901(a)(10), Oct. 4,1976, 90 Stat. 1765.) § 65. Ordinary loss defined For purposes of this subtitle, the term "ordi- nary loss" includes any loss from the sale or ex- change of property which is not a capital asset. Any loss from the sale or exchange of property which is treated or considered, under other pro- visions of this subtitle, as "ordinary loss" shall be treated as loss from the sale or exchange of property which is not a capital asset. (Added Pub. L. 94-455, title XIX, § 1901(a)(11), Oct. 4, 1976, 90 Stat. 1765.) PART II-ITEMS SPECIFICALLY INCLUDED IN GROSS INCOME Sec. 71. Alimony and separate maintenance payments. 72. Annuities; certain proceeds of endowment and life insurance contracts. 73. Services of child. 74. Prizes and awards. 75. Dealers in tax-exempt securities. [76. Repealed.] 77. Commodity credit loans. 78. Dividends received from certain foreign corpora- tions by domestic corporations choosing foreign tax credit. 79. Group-term life insurance purchased for employ- ees, 80. Restoration of value of certain securities. 81. Certain increases in suspense accounts. 82. Reimbursement of moving expenses. 83. Property transferred in connection with perfor- mance of services. 84. Transfer of appreciated property to political or- ganizations. AMENDMENTS 1976-Pub. L. 94-455, title XIX, § 1901(b)(5), Oct. 4, 1976. 90 Stat. 1793, struck out item 76 "Mortgages made or obligations issued by joint-stock land banks". 1975-Pub. L. 93-625, §§ 4(c)(2), 13(a)(2), Jan. 3, 1975, 88 Stat. 2111, 2121, substituted in item 81 "Certain in- creases in suspense accounts" for "Increases in sus- pense account under section 166(g)", and added item 84. 1969-Pub. L. 91-172, title II, § 231(c (1), title III, § 321(c), Dec. 30, 1969, 83 Stat. 579. 591, added items 82, 83. 1966-Pub. L. 89-722, § 1(b)(2), Nov. 2, 1966, 80 Stat. 1152, inserted item 81. Pub. L. 89-384, § 1(b)(2), Apr. 8, 1966, 80 Stat, 102, added item 80. 1964-Pub. L. 88-272, title II, § 204(a)(2), Feb. 26, 1964, 78 Stat. 36, added item 79. 1962-Pub. L. 87-834, § 9(d)(1), Oct. 16, 1962, 76 Stat. 1001, added item 78. Page 97