Volume 84 · 2061
Public Law 91–677
To amend provisions of the Internal Revenue Code of 1854 relating to the treatment of certain losses sustained by reason of the confiscation of property by the government of Cuba.
Approved January 12, 1971
Statutory text
AN ACT
To amend provisions of the Internal Revenue Code of 1854 relating to the treatment of certain losses sustained by reason of the confiscation of property by the government of Cuba.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
That
section
Taxes.
Property losses, confiscation by Cuba.
165 (i) of the Internal Revenue Code of 1954 (relating to certain property confiscated by the government of Cuba) is amended—
by striking out “or (2)” in paragraph (1) (B);
by striking out “on December 31, 1958” in the last sentence of paragraph (1) and inserting in lieu thereof the following: “on one or more days in the period beginning on December 31, 1958, and ending on May 16, 1959”;
by amending paragraph (2) (B) to read as follows:
“(B) For purposes of subsection (a), the fair market value of property held by the taxpayer on one or more days during the period beginning on December 31, 1958, and ending on May 16, 1959, to which paragraph (1) applies, on the day on which the loss of such property was sustained, shall be its fair market value on the first day in such period on which the property was held by the taxpayer.”; and
by striking out paragraph (3) thereof.
The amendments made by subsection (a) of this section
Effective date.
shall apply in respect of losses sustained in taxable years ending after December 31, 1958.
Notwithstanding any law or rule of law, refund or credit of
Overpayment, refund or credit.
any overpayment attributable to the amendments made by subsection (a) may be made or allowed if claim therefor is filed after the date of the enactment of this Act and before July 1, 1971. No interest shall be allowed with respect to any such refund or credit for any period before January 1, 1972.
Sec. 2.
Section 172(b)(1)(D) of the Internal Revenue Code of 1954 (relating to carryover of foreign expropriation losses) is
amended by inserting before the semicolon at the end thereof the following: “(or, with respect to that portion of the net operating loss for such year attributable to a Cuban expropriation loss, to each of the 15 taxable years following the taxable year of such loss)”.
Section 172(b) (2) of such Code (relating to amount of carrybacks
and carryovers) is amended by inserting before the period at the end thereof the following: “, and, if a portion of a foreign expropriation loss for the loss year is attributable to a Cuban expropriation loss, such portion shall be considered to be a separate foreign expropriation loss for such year to be applied after the other portion of such foreign expropriation loss”.
Section 172(k) of such Code (relating to definition of foreign
expropriation loss) is amended by adding at the end thereof the following new paragraph:
“(3) The term ‘Cuban expropriation loss’ means, for any taxable
“Cuban expropriation loss.”
year, a foreign expropriation loss sustained by reason of the expropriation, intervention, seizure, or similar taking of property, before January 1, 1964, by the government of Cuba, any political subdivision thereof, or any agency or instrumentality of the foregoing. The portion of a foreign expropriation loss for any taxable year attributable to a Cuban expropriation loss is the amount of the Cuban expropriation loss.”
The amendments made by this section shall apply in respect of foreign expropriation losses sustained in taxable years ending after December 31, 1958.
Approved January 12, 1971.