Page:United States Statutes at Large Volume 111 Part 1.djvu/1065

 PUBLIC LAW 105-34—AUG. 5, 1997 111 STAT. 1041 the end the following new sentence: "Such term shall not include any trust during any period the trust is treated as part of an estate under section 646.". (c) CLERICAL AMENDMENT.— The table of sections for such subpart A is amended by adding at the end the following new item: "Sec. 646. Certain revocable trusts treated as part of estate.". (d) EFFECTIVE DATE. —The amendments made by this section 26 USC 646 note. shall apply with respect to estates of decedents dying after the date of the enactment of this Act. SEC. 1306. DISTRIBUTIONS DURING FIRST 65 DAYS OF TAXABLE YEAR OF ESTATE. (a) IN GENERAL. —Subsection (b) of section 663 (relating to distributions in first 65 days of taxable year) is amended by inserting "an estate or" before "a trust" each place it appears. (b) CONFORMING AMENDMENT.— Paragraph (2) of section 663(b) is amended by striking "the fiduciary of such trust" and inserting "the executor of such estate or the fiduciary of such trust (as the case may be)". (c) EFFECTIVE DATE. —The amendments made by this section 26 USC 663 note, shall apply to taxable years beginning after the date of the enactment of this Act. SEC. 1307. SEPARATE SHARE RULES AVAILABLE TO ESTATES. (a) IN GENERAL. —Subsection (c) of section 663 (relating to separate shares treated as separate trusts) is amended— (1) by inserting before the last sentence the following new sentence: "Rules similar to the rules of the preceding provisions of this subsection shall apply to treat substantially separate and independent shares of different beneficiaries in an estate having more than 1 beneficiary as separate estates.", and (2) by inserting "or estates" after "trusts" in the last sentence. (b) CONFORMING AMENDMENT.— The subsection heading of section 663(c) is amended by inserting "ESTATES OR" before "TRUSTS". (c) EFFECTIVE DATE. —The amendments made by this section 26 USC 663 note, shall apply to estates of decedents dying after the date of the enactment of this Act. SEC. 1308. EXECUTOR OF ESTATE AND BENEFICIARIES TREATED AS RELATED PERSONS FOR DISALLOWANCE OF LOSSES, ETC. (a) DISALLOWANCE OF LOSSES. — Subsection (b) of section 267 (relating to losses, expenses, and interest with respect to transactions between related taxpayers) is amended by striking "or" at the end of paragraph (11), by striking the period at the end of paragraph (12) and inserting "; or", and by adding at the end the following new paragraph: "(13) Except in the case of a sale or exchange in satisfaction of a peciiniary bequest, an executor of an estate and a beneficiary of such estate.". (b) ORDINARY INCOME FROM GAIN FROM SALE OF DEPRECIABLE PROPERTY. —Subsection (b) of section 1239 is amended by striking the period at the end of paragraph (2) and inserting ", and" and by adding at the end the following new paragraph:

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