CAPITAL LOSS CARRYOVERS FOR TAXPAYERS OTHER THAN CORPORATIONS.

SEC. 230. CAPITAL LOSS CARRYOVERS FOR TAXPAYERS OTHER THAN CORPORATIONS. (a) In General.—Section 1212 (relating to capital loss carryover) is amended— (1) by striking out “If for any taxable year the taxpayer” and inserting in lieu thereof: “(a) Corporations.—If for any taxable year a corporation”: and (2) by adding at the end thereof the following new subsection: “(b) Other Taxpayers.— 78 Stat. 100 “(1) In general.—If a taxpayer other than a corporation has a net capital loss for any taxable year beginning after December 31, 1963— “(A) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and “(B) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year. For purposes of this paragraph, in determining such excesses an amount equal to the excess of the sum allowed for the taxable year under section 1211(b) over the gains from sales or exchanges of capital assets (determined without regard to this sentence) shall be treated as a short-term capital gain in such year. “(2) Transitional rule.—In the case of a taxpayer other than a corporation, there shall be treated as a short-term capital loss in the first taxable year beginning after December 31, 1963, any amount which is treated as a short-term capital loss in such year under this subchapter as in effect immediately before the enactment of the Revenue Act of 1964.” (b) Technical Amendments.— (1) Section 1222(9) (relating to net capital gain) is amended to read as follows: “(9) Net capital gain.—In the case of a corporation, the term ‘net capital gain’ means the excess of the gains from sales or exchanges of capital assets over the losses from such sales or exchanges.” (2) The second sentence of section 1222(10) (relating to net capital loss) is amended by striking out “For the purpose” and inserting in lieu thereof “In the case of a corporation, for the purpose”. (c) Effective Date.—The amendments made by this section shall apply 1° taxable years beginning after December 31, 1963.