September 22, 1959 Pub. Law 86-346 TITLE II-INCOME TAX TREATMENT OF CERTAIN EX- SEC. 201. (a) Part III of subchapter O of chapter 1 of the Internal Revenue Code of 1954 (relating to common nontaxable exchanges) is amended by adding at the end thereof the following new section: "SEC. 1037. CERTAIN EXCHANGES OF UNITED STATES OBLIGATIONS. "(a) GENERAL RULE.-When so provided by regulations promulgated by the Secretary in connection with the issue of obligations of the United States, no gain or loss shall be recognized on the surrender to the United States of obligations of the United States issued under the Second Liberty Bond Act in exchange solely for other obligations issued under such Act. "(b) APPLICATION OF SECTION 1232. "(1) EXCHANGES INVOLVING OBLIGATIONS ISSUED AT A DISCOUNT. In any case in which gain has been realized but not recognized because of the provisions of subsection (a) (or so much of section 1031(b) as relates to subsection (a) of this section), to the extent such gain is later recognized by reason of a disposition or redemption of an obligation received in an exchange subject to such provisions, the first sentence of section 1232 (a) (2) (A) shall apply to such gain as though the obligation disposed of or redeemed were the obligation surrendered to the Government in the exchange rather than the obligation actually disposed of or redeemed. For purposes of this paragraph and section 1232, if the obligation surrendered in the exchange is a nontransferable obligation described in subsection (a) or (c) of section 454 "(A) the aggregate amount considered, with respect to the obligation surrendered, as gain from the sale or exchange of property which is not a capital asset shall not exceed the difference between the issue price and the stated redemption price which applies at the time of the exchange, and "(B) the issue price of the obligation received in the exchange shall be considered to be the stated redemption price of the obligation surrendered in the exchange, increased by the amount of other consideration (if any) paid to the United States as a part of the exchange. "(2) EXCHANGES OF TRANSFERABLE OBLIGATIONS ISSUED AT NOT LESS THAN PAR. In any case in which subsection (a) (or so much of section 1031 (b) or (c) as relates to subsection (a) of this section) has applied to the exchange of a transferable obligation which was issued at not less than par for another transferable obligation, the issue price of the obligation received from the Government in the exchange shall be considered for purposes of applying section 1232 to be the same as the issue price of the obligation surrendered to the Government in the exchange, increased by the amount of other consideration (if any) paid to the United States as a part of the exchange. "(c) CROSS REFERENCES. "(1) For rules relating to the recognition of gain or loss in a case where subsection (a) would apply except for the fact that the exchange was not made solely for other obligations of the United States, see subsections (b) and (c) of section 1031. "(2) For rules relating to the basis of obligations of the United States acquired in an exchange for other obligations described in subsection (a), see subsection (d) of section 1031." 73 STAT. 623. 73 STAT. 624. 68A Stat. 302. 68A Stat. 302. 72 Stat. 1641. 61 Stat. 180. Effective date. Pub. Law 86-346 September 22, 1959 (b) The table of sections for part III of subchapter O of chapter 1 of the Internal Revenue Code of 1954 is amended by adding at the end thereof the following: "Sec. 1037. Certain exchanges of United States obligations." (c) Section 1031(b) of such Code (relating to gain from exchanges of property not solely in kind) is amended by striking out "the provisions of subsection (a), of section 1035(a), or of section 1036 (a)," and inserting in lieu thereof "the provisions of subsection (a), of section 1035 (a), of section 1036 (a), or of section 1037 (a),". (d) Section 1031(c) of such Code (relating to loss from exchanges of property not solely in kind) is amended by striking out "the provisions of subsection (a), of section 1035 (a), or of section 1036 (a)," and inserting in lieu thereof "the provisions of subsection (a), of section 1035 (a), of section 1036(a), or of section 1037 (a),". (e) Section 1031(d) of such Code (relating to basis in the case of exchanges of property held for productive use or investment) is amended by striking out "this section, section 1035 (a), or section 1036 (a)," each place it appears in the first and second sentences thereof and inserting in lieu thereof "this section, section 1035 (a), section 1036 (a), or section 1037 (a),". SEC. 202. Section 4(a) of the Public Debt Act of 1941, as amended (31 U.S.C., sec. 742a), is amended by striking out "under the Internal Revenue Code, or laws amendatory or supplementary thereto" and inserting in lieu thereof "except as provided under the Internal Revenue Code of 1954". SEC. 203. The amendments made by this title shall be effective for taxable years ending after the date of enactment of this Act. Approved September 22, 1959. Public Law 86-442 AN ACT To repeal section 1505 of the Social Security Act so that in determining eligibility of Federal employees for unemployment compensation their accrued annual leave shall be treated in accordance with State laws, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That, effective only Social Security with respect to benefit years which begin more than thirty days after Act. the date of enactment of this Act, section 1505 of the Social Security Repeal and amendAct (42 U.S.C. 1365) is hereby repealed. ments. 68 Stat. 1133. SEC. 2. Section 1511(f) of the Social Security Act (42 U.S.C. 1371 (f)) is amended by striking out "section 1505 applies" and insert-72 Stat. 1089. ing in lieu thereof "section 1505 continues (without regard to its 74 STAT. 81. repeal) to apply". 4 STAT SEC. 3. Section 213(a)2(B) of the Social Security Act is amended 42 USC 413. by adding at the end thereof the following language: "If, in the case of an individual who did not die prior to January 1, 1955, and who attained retirement age or died before July 1, 1957, the requirements 82 for insured status in section 214(a)(3) are not met because of his 42 USC 414. This amendment shall be applicable in the case of monthly benefits under title II of the Social Security Act for months after June 1957, 42 USC 401and in the case of the lump-sum death payments under such title, with 425. respect to deaths occurring after such month; the requirements for filing applications for such benefits and payments within certain time limits, as prescribed in sections 202 (i) and 202(j) of such title, shall 42 USC 402. Approved April 22, 1960. 86-535 - 72 - 27 Public Law 86-778 AN ACT 74 STAT. 924. To extend and improve coverage under the Federal Old-Age, Survivors, and Disability Insurance System and to remove hardships and inequities, improve the financing of the trust funds, and provide disability benefits to additional individuals under such system; to provide grants to States for medical care for aged individuals of low income; to amend the public assistance and maternal and child welfare provisions of the Social Security Act; to improve the unemployment compensation provisions of such Act; and for other purposes. Be it enacted by the Senate and Ilouse of Representatives of the United States of America in Congress assembled, That this Act, Social divided into titles and sections according to the following table of Security contents, may be cited as the "Social Security Amendments of 1960". Amendments TABLE OF CONTENTS TITLE I-COVERAGE Sec. 101. Extension of time for ministers to elect coverage. Sec. 102. State and local governmental employees. (a) Delegation by Governor of certification functions. (b) Employees transferred from one retirement system to another. (d) Policemen and firemen. (e) Limitation on States' liability for employer (and employee) contributions in certain cases. (f) Statute of limitations for State and local coverage. (g) Municipal and county hospitals. (h) Validation of coverage for certain Mississippi teachers. (i) Justices of the peace and constables in the State of Nebraska. (j) Teachers in the State of Maine. (k) Certain employees in the State of California. (1) Inclusion of Texas among States which are permitted to divide their retirement systems into two parts for purposes of obtaining social security coverage under Federal-State agreement. Sec. 103. Extension of the program to Guam and American Samoa. Sec. 104. Service of parent for son or daughter. Sec. 105. Employees of nonprofit organizations. Sec. 106. American citizen employees of foreign governments and international organizations. TITLE II-ELIGIBILITY FOR BENEFITS Sec. 201. Children born or adopted after onset of parent's disability. Sec. 202. Continued dependency of stepchild on natural father. Sec. 203. Payment of burial expenses. Sec. 204. Fully insured status. Sec. 205. Survivors of individuals who died prior to 1940 and of certain other individuals. Sec. 206. Crediting of quarters of coverage for years before 1951. Sec. 207. Time needed to acquire status of wife, child, or husband in certain cases. Sec. 209. Penalty deductions under foreign work test. Sec. 210. Extension of filing period for husband's, widower's, or parent's benefits in certain cases. Sec. 211. Increase in the earned income limitation. of 1960. (410) Pub. Law 86-778 September 13, 1960 Sec. 301. Increase in insurance benefits of children of deceased workers. Sec. 302. Maximum family benefits in certain cases. Sec. 303. Computations and recomputations of primary insurance amounts. Sec. 401. Elimination of requirement of attainment of age fifty for disability Sec. 402. Elimination of the waiting period for disability insurance benefits in Sec. 403. Period of trial work by disabled individual. Sec. 404. Special insured status test in certain cases for disability purposes. Sec. 521. Amendment of title IX of the Social Security Act. Sec. 901. Employment security administration account. Sec. 902. Transfers between Federal unemployment account and employment security administration account. Sec. 903. Amounts transferred to State accounts. Sec. 904. Unemployment Trust Fund. Sec. 522. Amendment of title XII of the Social Security Act. Sec. 1201. Advances to State unemployment funds. Sec. 1202. Repayment by States of advances to State unemploy- ment funds. Sec. 1203. Advances to Federal unemployment account. Sec. 1204. Definition of Governor. PART 4-EXTENSION OF FEDERAL-STATE UNEMPLOYMENT COMPENSATION PROGRAM Sec. 541. Extension of titles III, IX, and XII of the Social Security Act. |