Pub. L. 91-106, tit. VI, sec. 601

Sec. 601. (a) Section 4 of title I of article I of the District of Columbia Income and Franchise Tax Act of 1947 (D.C. Code, sec. 47–1551c) is amended as follows: (1) Paragraph (1) of such section is amended to read as follows: “(l)(1) The term ‘capital asset’ means property defined or treated as a capital asset under the Internal Revenue Code of 1954. “(2) For the purpose of computing for any taxable year the tax imposed under this article with respect to sales or other dispositions of property referred to in subparagraph (1), the provisions of the Internal Revenue Code of 1954 relating to the treatment of gains and losses (other than the alternative tax imposed by section 1201 of such Code) shall apply.” (2) Paragraph (m) of such section is amended by inserting immediately before the colon preceding the first proviso the following: “, except that in the case of any such distribution any part of which for purposes of the income tax imposed under the Internal Revenue Code of 1954 is deemed to constitute a capital gain, such part shall be deemed to constitute a capital gain for purposes of the tax imposed by this article”. (3) Paragraph (aa) of such section is repealed. (b) Title III of such article is amended as follows: (1) Section 2(a) of such title (D.C. Code, sec. 47–1557a) is amended by striking out “other than capital assets” and inserting in lieu thereof “including capital assets”. (2) Paragraph (11) of section 2(b) of such title is repealed. (3) Paragraph (4) of section 3(a) of such title (D.C. Code, sec. 47–1557b) is amended by striking out subparagraph (C) and inserting in lieu thereof the following: “(C) of property not connected with a trade or business, if such losses arise from fire, storm, shipwreck, or other casualty, or from theft, except that in the case of an individual, a loss described in this subparagraph shall be allowed only to the extent that the amount of loss to such individual arising from each casualty, or from each theft, exceeds $100. For purposes of the $100 limitation of subparagraph (C), a husband and wife making a joint return for the taxable year in which the loss is allowed as a deduction shall be treated as one individual. No loss 83 Stat. 177described in this paragraph shall be allowed if, at the time of filing the return, such loss has been claimed for inheritance or estate tax purposes.” (4) Paragraph (6) of section 3(b) of such title is repealed. (c) Title XI of such article is amended as follows: (1) Section 1 of such title (D.C. Code, sec. 47–1583) is amended to read as follows: “Sec. 1. Basis for Determining Gain or Loss.—The basis for determining the gain or loss from the sale or other disposition of property shall be the same basis as that provided for determining gain or loss under the Internal Revenue Code of 1954.” (2) (A) Section 2 of such title (D.C. Code, sec. 47–1583a) is amended to read as follows: “Sec. 2. Computation of Gain or Loss.—The gain or loss, as the case may be, from the sale or other disposition of property, including the amount realized and the amount recognized, shall be determined in the same manner provided for the determination of gain or loss for Federal income tax purposes under the Internal Revenue Code of 1954.” (B) The item in the table of contents of such article relating to section 2 of title XI is amended to read as follows: “Sec. 2. Computation of gain or loss.” (3)(A) Sections 3 and 5 of such title (D.C. Code, secs. 47–1583b, 47–1583d) are repealed. (B) The items in the table of contents of such article relating to such sections 3 and 5 are repealed. (4) Section 6 of such title (D.C. Code, sec. 47–1583e) is amended to read as follows: “Sec. 6. Depreciation.—The basis used in determining the amount allowable as a deduction from gross income under the provisions of section 3(a)(7) of title III of this article shall be the same basis as that provided for determining the gain from the sale or other disposition of property for Federal income tax purposes under the Internal Revenue Code of 1954.”