UNDISTRIBUTED PERSONAL HOLDING COMPANY INCOME.

SEC. 32. UNDISTRIBUTED PERSONAL HOLDING COMPANY INCOME. (a) Charitable Contributions.— Section 545 (b) (2) (relating to adjustments to taxable income to determine undistributed personal holding company income) is amended to read as follows: “(2) Charitable contributions.—The deduction for charitable contributions provided under section 170 shall be allowed, but in computing such deduction the limitations in section 170 (b) (1) (A) and (B) shall apply, and section 170 (b) (2) shall not apply. For purposes of this paragraph, the term ‘adjusted gross income’ when used in section 170 (b) (1) means the taxable income computed with the adjustments (other than the 5-percent limitation) provided in the first sentence of section 170 (b) (2) and without deduction of the amount disallowed under paragraph (8) of this subsections” (b) Net Operating Loss.—Section 545 (b) (4) (relating to adjustments to taxable income to determine undistributed personal holding company income) is amended by inserting before the period at the end thereof “computed without the deductions provided in part VIII (except section 248) of subchapter B”. 72 Stat. 1632 (c) Effective Date for Subsection (b).—The amendment made by subsection (b) of this section shall apply with respect to adjustments under section 545 (b) (4) of the Internal Revenue Code of 1954 for taxable years beginning after December 31, 1957.