proprietorship or an entity otherwise disregarded as separate from its sole owner, the taxpayer is the sole owner, and (iv) in the case of a trust or estate, the taxpayer is a beneficiary. (B) Net capital gain Such term shall not include any item taken into account in determining net capital gain. (C) Exception for financial services income of partnerships In the case of a taxpayer who holds a capital or profits interest in a partnership, such term does not include financial services income (as defined in section 904(d)(2)(D)). (3) Limitation Paragraph (1) shall only apply to a taxable year in which the maximum rate of tax under this section exceeds the maximum rate of tax under section 11. (4) Net capital gain For purposes of this subsection, the term net capital gain has the meaning given to such term by subsection (h). (5) Regulations The Secretary shall issue such regulations or other guidance as may be necessary to carry out the purposes of this subsection. . (b) Effective date The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.