DEDUCTION FOR GUARANTEES OF BUSINESS BAD DEBTS TO GUARANTORS NOT INVOLVED IN BUSINESS.

SEC. 605. DEDUCTION FOR GUARANTEES OF BUSINESS BAD DEBTS TO GUARANTORS NOT INVOLVED IN BUSINESS. (a) Repeal of Section 166(f).— Section 166 (relating to bad debts) is amended by striking out subsection (f) and by redesignating subsections (g) and (h) as subsections (f) and (g), respectively. (b) Conforming Amendment.— Paragraph (1) of section 81 (relating to certain increases in suspense accounts) is amended by striking out “section 166(g)” in the text and inserting in lieu thereof “section 166 (f)”, (c) Effective Date.— The amendments made by this section shall apply to guarantees made after December 31, 1975, in taxable years beginning after such date.