BONDS ISSUED AT DISCOUNT.

SEC. 50. BONDS ISSUED AT DISCOUNT. (a) Treatment of Gain.—The first sentence of section 1232 (a) (2) (A) (relating to treatment of gain on sale or exchange of certain bonds and other evidences of indebtedness) is amended by striking out “which does not exceed an amount which bears the same ratio to the original issue discount (as defined in subsection (b)) as the number of complete months that the bond or other evidences of indebtedness was held by the taxpayer bears to the number of complete months 72 Stat. 1643 from the date of original issue to the date of maturity,” and inserting in lieu thereof “which does not exceed— “(i) an amount equal to the original issue discount (as defined in subsection (b)), or “(ii) if at the time of original issue there was no intention to call the bond or other evidence of indebtedness before maturity, an amount which bears the same ratio to the original issue discount (as defined in subsection (b)) as the number of complete months that the bond or other evidence of indebtedness was held by the taxpayer bears to the number of complete months from the date of original issue to the date of maturity,”. (b) Effective Date.—The amendment made by subsection (a) shall apply to taxable years ending after December 31, 1957, but only with respect to dispositions after such date.