RECEIPTS OF CERTAIN TERMINATION PAYMENTS BY EMPLOYEE.

SEC. 329. RECEIPTS OF CERTAIN TERMINATION PAYMENTS BY EMPLOYEE. (a) Taxability to Employee as Capital Gain.—Section 117 of the Internal Revenue Code is hereby amended by adding at the end thereof the following subsection: “(p) Taxability to Employee of Termination Payments.—Amounts received from the assignment or release by an employee, after more than twenty years’ employment, of all his rights to receive, after termination of his employment and for a period of not less than five years (or for a period ending with his death), a percentage of future profits or receipts of his employer shall be considered an amount 65 Stat. 505 received from the sale or exchange of a capital asset held for more than six months, if such rights were included in the terms of the employment of such employee for not less than twelve years, and if the total of the amounts received for such assignment or release are received in one taxable year and after the termination of such employment.” (b) Effective Date.—The amendment made by this section shall be applicable with respect to taxable years beginning after December 31, 1950.