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PART TWO:

REVENUE PROVISIONS

(71)

CONTENTS OF REVENUE PROVISIONS

Page

I. SUMMARY OF REVENUE PROVISIONS__

II. REASONS FOR REVENUE PROVISIONS.

III. BUDGET EFFECTS OF REVENUE PROVISIONS_

IV. EXPLANATION OF REVENUE PROVISIONS__

A. Individual Income Tax Provisions.
1. Alternative minimum tax..

79

96

100

107

107

107

2. Revision of deduction for medical ex-
penses--

113

3. Revision of deduction for personal cas-
ualty losses.

115

117

118

118

122

124

4. Decrease in holding period for long-
term capital gains..

B. Provisions Primarily Relating to Business.
1. Corporate minimum tax.

2. Basis adjustment for investment tax

credits___.

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b. Changes to pre-ERTA leasing
rules___

c. Safe harbor leasing rules

7. Foreign tax provisions_.

a. Limitation on credit for foreign
income taxes imposed on for-
eign oil extraction income and
current taxation of oil-related
income..

b. Allocation of possession corpo-
ration intangibles income to
U.S. shareholders; increase in
active income test for qualifi-
cation as possessions corpora-
tion; related Virgin Islands
provisions__

c. Deductibility of payments under
the Foreign Corrupt Practices
Act.

8. Tax-exempt obligations--.

a. Restrictions on tax-exempt

125

127

130

138

139

140

146

146

155

164

166

bonds for private activities-- 166

(73)

IV. EXPLANATION OF REVENUE PROVISIONS-Continued
B. Provisions Primarily Relating to Busi-

ness-Continued

8. Tax-exempt obligations-Continued
b. Other amendments affecting in-
dustrial development bonds..
(1) Tax exemption for in-
dustrial development

bonds for facilities

for the local furnish

Page

176

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15. Accelerated corporate tax payments___ C. Provisions Designed To Improve Taxpayer Compliance

1. Withholding on interest and dividends

223

226

226

IV. EXPLANATION OF REVENUE PROVISIONS-Continued
C. Provisions Designed To Improve Taxpayer
Compliance-Continued

2. Expanded reporting

a. Reporting of interest.

Page

238

238

b. Obligations required to be regis-
tered

242

245

c. Returns of brokers__

d. Information reporting require-
ments for payments of remu-

neration for services and direct

sales

247

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