Computation of tax.
Computation of tax.
(1) The tax attributable to the amounts to which this section applies for the taxable year in which such amounts are received is the greater of—
(i) 5 times the increase in tax which would result from the inclusion in gross income of the recipient of 20 percent of so much of the amount so received as is includible in gross income, or
(ii) 5 times the increase which would result if the taxable income of the recipient for such taxable year equaled 20 percent of the excess of the aggregate of the amounts so received and includible in gross income over the amount of the deductions allowed the recipient for such taxable year under section 151 (relating to deduction for personal exemptions).
(2) The application of the rules of this paragraph may be illustrated by the following example:
(1) The tax attributable to the amounts to which this section applies for the taxable year in which such amounts are received is the greater of—
(i) 5 times the increase in tax which would result from the inclusion in gross income of the recipient of 20 percent of so much of the amount so received as is includible in gross income, or
(ii) 5 times the increase which would result if the taxable income of the recipient for such taxable year equaled 20 percent of the excess of the aggregate of the amounts so received and includible in gross income over the amount of the deductions allowed the recipient for such taxable year under section 151 (relating to deduction for personal exemptions).
(2) The application of the rules of this paragraph may be illustrated by the following example: